Uber sells its self-driving business to start-up Aurora for $4bn
Ride-hailing company sells Advanced Technologies Group at a marked-down price and may invest $400m in Aurora
New York — Uber Technologies is selling its autonomous driving unit, Advanced Technologies Group (ATG), to self-driving car start-up Aurora, the companies said on Monday, in a move that would accelerate the ride-sharing company's goal to achieve profitability.
The equity deal valued the ATG at $4bn, according to people familiar with the matter.
The valuation of ATG has taken a dive from 2019, when it raised $1bn from a consortium of investors including Toyota Motor and SoftBank at a valuation of $7.25bn.
Uber is also investing $400m in Aurora, in a deal that valued Aurora at $10bn, the people added. Uber will hold about 26% ownership interest in Aurora on a fully diluted basis, the company said in a filing. Uber and Aurora will enter into a collaboration agreement to launch self-driving vehicles on the Uber ride sharing network.
The sale will accelerate Uber's goal to achieve profitability on an adjusted basis by the end of 2021, CEO Dara Khosrowshahi said in an interview. "This essentially advances our path to profitability," Khosrowshahi said.
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