Uber investors hoping to see an influx of cash into their company are likely to be disappointed after hearing that billionaire investor Warren Buffet’s $3 billon proposal to the ride share company fell apart. New reports indicate that the famed investor, who’s one of the wealthiest men in history, offered the colossal deal to Uber Technologies, Inc. earlier this year in an effort to protect some of his investments, though it’s unlikely to take shape now.
After Uber and Buffet’s representatives failed to come to an agreement regarding the specifics of the deal, continuing Buffet’s tradition of generally shying away from large tech companies in his expansive investing portfolio. Buffet has made a name for himself making incredibly risky investments in ailing companies in the past, such as when collected nearly $10 billion in returns from crisis investing earlier this decade, per the Wall Street Journal, but it appears wholly unlikely he’ll be getting further involved with Uber.
Buffet took time to note that much of the discussion surrounding his potential deal with Uber is rife with disinformation. While the billionaire investing guru confirmed the existence of his talks with Uber to CNBC, he noted that the details remain hazy, and appeared doubtful of much of the public speculation surrounding the potential transaction.
“Some of the reported details are not correct but it’s true that Berkshire had discussions with Uber,” Buffet told CNBC after praising Uber’s CEO Dara Khosrowshahi.
Uber is currently in the middle of a fundraising spree ahead of the ride-sharing app’s expected initial public offering, which is set to happen in 2019 and will doubtlessly be one of the biggest events in the market all year. The company has already secured some very lucrative deals to help finance its future ambitions, including scoring a $1.25 billion direct investment by the independent financier SoftBank Group, Inc. Uber remains incredibly popular for ride-sharers around the world, but needs direct investments from outside sources thanks to the tremendous losses the ride-sharing company has been posting lately, year on year.
Uber reported a massive loss of $4.5 billion in 2017, for instance, which helps illustrate exactly how vital it is to secure additional funding from the likes of people and firms like Berkshire and SoftBank. The loss of Buffet’s potential investment could hit the ride-sharing company hard, but it’s already in talks to form other lucrative partnerships with investors and others, like a potential partnership with its competitor, Waymo.