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By investing, they co-own the company (at least partly), right? Seems smarter than trying to license the tech in 10 years.
by philip1209 8y ago
By investing, they co-own the company (at least partly), right? Seems smarter than trying to license the tech in 10 years.
- gph 8y agoI mean, they'll still have to license the tech from Cruise, they'll just be licensing from a company they have a minority stake in. You can't just use tech from some other company even if you are part-owner. Heck I don't think you can even do that from a fully-owned subsidiary. They have to have structural/legal independence or it's really just a different branch of the same company.
- FredFS456 8y agoIf it's a fully-owned subsidiary you could draft a contract of licensing in exchange for a token $1 or something like that. (Or is there regulatory oversight?)
- gmb2k1 8y agoThat would constitute tax fraud in many legislations. That's one of the principal points that tax auditors check in a group, although it's oftentimes hard to determine a market price.
- fma 8y agoI saw on Bloomberg TV 5%...though I think that is 5% of Cruise and not GM. GM bought cruise for $500 million cash. This investment puts Cruise at $15 billion. Nice return...