The Clap SoftBank sold its stake in General Motors (GM: NYSE) self-driving car subsidiary “Cruise”, forcing General Motors to invest another $3.45 billion in the loss-making unit.
The deets Cruise is a self-driving car company. GM is buying SoftBank’s existing stake in Cruise for $2.1 billion, as well as an additional $1.35 billion SoftBank had committed to investing back in 2018.
Why SoftBank is exiting SoftBank is planning on “selling a good chunk of assets”, according to its CEO. The bank’s investment portfolio was hit by China’s crackdown on its companies, the prospect of higher interest rates & the Russia-Ukraine crisis.
Why this matters There are doubts as to whether Cruise is ready to generate meaningful revenue anytime soon. Investors are likely to have to spend a lot more before they start seeing some money back. Cruise does have notable shareholders including Microsoft, Walmart & Honda.