Uber sold its self-driving car business, Uber Advanced Technologies Group (ATG) to self-driving car startup Aurora for $4 billion!
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Uber sold its self-driving car business, Uber Advanced Technologies Group (ATG) to self-driving car startup Aurora for $4 billion!. One prominent point to note here is that this equity deal marks a major drop in #valuation for ATG, as it had just raised $1 billion from investors like Toyota Motor and SoftBank at a valuation of $7.25 billion last year.
What made the valuation droop down to nearly half?
~Uber is not a “profitable” business!. Uber, separately is also investing $400 million in Aurora, which values Aurora at $10 billion. Last year in September, Aurora was just valued at $3 billion and this year, its valuation has magnified to more than 3x. Looks like young startups are performing way better than the #startup turned MNCs.
Uber will hold about 26% ownership interest in Aurora on a fully diluted basis to develop self-driving cars and delivery vehicles. CEO Dara Khosrowshahi believes that this deal will accelerate its goal to achieve profitability on an adjusted basis by the end of 2021. The future looks bright for autonomous vehicles, but it will be interesting to see if it also brightens up Uber’s valuation.
Do you think Uber is driving it’s goals in the right path to achieve profitability? Will its valuation rise going forward?
