Warren Buffett has confirmed that he offered a $3 billion investment to Uber. However, he has also pointed out that not every detail was correct in the reported news. In an interview on CNBC, Buffett mentioned that it’s correct Berkshire Hathaway offered $3 billion investment to Uber.
What was the reason behind legendary investor Warren Buffett’s investment offer to Uber? Let’s dig into the interview and find out more about his strategy behind this investment effort. There have been many rumors about Uber going out of business due to conflicts occurred in the last two years. So, why would an investor guru like Warren Buffett would consider investing in a company has struggling reputation?
You are extremely right! It’s a brilliant move to increase the return of investments with an innovative company like Uber. Moreover, it wouldn’t be the first time Buffett rescuing a struggling company. He followed the same strategy on Goldman Sachs after the global crisis. Because their strategies caused horrible reputation to Goldman Sachs after the crisis.
In January, SoftBank, the Japanese Investment Giant, secured their own stake in Uber. Therefore, Warren Buffett’s offer has occurred after SoftBank’s move according to Bloomberg. However, parties couldn’t agree on the deal terms, so it seems that the deal is on hold for now. Although, it might come back to the table with different conditions in the future.
Who is Warren Buffett?
Most of us know him by his famous quotes about investing and saving on social media. Basically, he is one of the most authoritative investors in the world. Warren Buffett is the CEO of Berkshire Hathaway that owns more than 60 multi-national companies.
These companies include worldwide-known brands in different industries such as Geico, Duracell, Dairy Queen.
Of course, this quick snap would not be efficient to explain him thoroughly. He has a reputation of being a great businessman, author, philanthropist, and many other titles. He is still one of the richest men alive. Therefore, his actions in the business world affect the whole industry.
So, we will consider putting together an article about him to give more insight about Warren Buffett and his life. You can follow this article to see our article on Warren Buffett as we will be placing a link here for convenience.
What does the Focus on Investment to Uber Mean?
For those who can’t recall the updates over the last two years, some quick history on Uber News for you:
Susan F. Rigetti, former Uber employee has published a detailed post about her being sexually assaulted in Uber. Her words about her experience regarding sexual harassment and discrimination in Uber widely spread in the social media. Shortly after, Uber drivers took advantage of the protests of Trump’s Travel Ban in NYC. Drivers used the protests in their favor to make extra money which resulted bad for the company. Following, people have started a “deleteuber” campaign and encouraged over 200,000 people to delete the app.
Is Uber Recovering its Reputation?
After all these events, Uber’s Founder Travis Kalanick resigned from this position as Uber CEO. For many, this was just a smart move to get away from answering many disturbing questions. Since then, Uber has been focusing on recovering their reputation with company’s brand-new CEO Dara Khosrowshahi. Apparently, it has been working very well financially as they are becoming the focus of brilliant investors again.