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I'll be curious to see if the Uber-Otto acquisition gets strained. It's common for the acquired company to make specific "representations and warranties", part
by payne92 10y ago
I'll be curious to see if the Uber-Otto acquisition gets strained.
It's common for the acquired company to make specific "representations and warranties", particularly around IP.
"We own our IP and didn't steal it" is typical, and some percentage of the deal is held back for ~1-2 years in case there is a problem.
But if there's fraud, all bets are off.
Does Uber throw Otto under the bus? It would be "The Uber Way", based on what's been published recently.
- MaxfordAndSons 10y agoI was under the impression the acquisition was a done deal as of August 2016? Hence why Waymo is suing Uber, not Otto.
- mlvc 10y agoEvery deal like this has a holdback escrow, exactly for situations like this. Breach of reps and warranties can be litigated post closing for fraud, which is the subject of negotiation over indemnities, a tug of war b/w both parties over how to allocate post closing risk.
- halflings 10y agoThe lawsuit is against Uber as they own Otto. I don't think Uber can just "throw Otto under the bus" at this point.
- PhantomGremlin 10y agoDoes Uber throw Otto under the bus? My prediction is that Kalanick and Levandowski will soon be attempting to throw each other under the bus to save their own job, money, and reputation. With any luck they will both wind up under a bus.
- thewhitetulip 10y agoI have always wondered where such CEOs/founders end up post the fiasco.