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> a deal announced this week in which Honda pledged to put $2.75 billion into Cruise in exchange for a 5.7 percent stake, valuing the company at about $14.5 bil
by HillaryBriss 8y ago
> a deal announced this week in which Honda pledged to put $2.75 billion into Cruise in exchange for a 5.7 percent stake, valuing the company at about $14.5 billion.
I'm not seeing how their arithmetic works.
2.75/14.5 =~ 19%
- tyingq 8y agoThey omitted some info. "Honda will take a stake in GM Cruise for $750 million and spend $2 billion more over 12 years to develop a self-driving vehicle for the GM unit that can be "manufactured at high volume for global deployment" Although 750/14500 isn't 5.7% either, but at least in the ballpark.
- HillaryBriss 8y agothanks for clarifying that. so, the equity stake was at a much more reasonable price than i initially thought. elsewhere in the article they mention that JP Morgan valued Waymo at something like $100 billion. also they say that Alphabet has plenty of cash. so, it seems reasonable to assume that Waymo didn't need cash from Honda. more interestingly, Waymo doesn't seem to place much value on Honda's production capabilities and other expertise. is Waymo embracing a sort of scorched-earth business plan? does Waymo have any true equity partners?
- count 8y agoAlphabet is historically horrible at dealing with enterprise businesses...
- deleted 8y ago[deleted]