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This is interesting... GM bought Cruise for what, $2 billion? And now Honda buys a minuscule stake in Cruise company for the same price GM bought the whole thin
by MH15 8y ago
This is interesting... GM bought Cruise for what, $2 billion? And now Honda buys a minuscule stake in Cruise company for the same price GM bought the whole thing for.
- bluGill 8y agoThat is normal. A small amount of money buys a large stake in the early days. As the technology gets closer and closer to reality the amount it costs to buy goes up. However don't read the above as invest in the early days - there are a lot of seemingly great ideas that will turn out to fail for some reason. Honda's bet is much less risky because it seems much more likely that cruise will have something to sell in the future. GM's bet was more risky, and [I forget who they bought cruise from] made an even more risky bet. This time it looks like it will pay off, but not all do.
- devy 8y ago> And now Honda buys a minuscule stake in Cruise company for the same price GM bought the whole thing for. No. The Honda investment is $750M. The rest of $2B commitment are for Honda to implement/integrate with Cruise's hardware/software technologies - not really payments to Cruise.
- fma 8y ago$500 million cash and another $500 mill in performance bonus, contract buyouts etc.