Starting from Tesla's self-driving technology and Uber's effort to create a non-human driven "taxi", the Softbank and associated investors thought it would be a wise investment decision to insert 1$ Billion into Uber, which is prepping for an IPO.
Under the terms of the proposed deal, investors would purchase from a pool of Uber stock specifically earmarked for the self-driving technologies unit. Uber would maintain majority control of the self-driving arm and would use the investment to fund its research and development. The deal would value the self-driving business at $5 billion to $10 billion, the people said.
So Uber's stock price will shore high, right? Well... not so fast. This investment might be a boom and bust.
But Uber is under scrutiny for its losses -- its net loss was $842 million in the fourth quarter -- and self-driving technologies are expensive. A $1 billion infusion could ease worries about how costly it is to develop autonomous cars.
What do YOU think? Do you think self-driving tech is just a gimmick or are we actually seeing the future?
The story originates from here