Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Vodacom, Maziv deal now looks likely after CompCom U-turn

      8 July 2025

      Icasa publishes new draft regulations for digital TV

      8 July 2025

      Fast-growing Beira port to get private mobile network

      8 July 2025

      MultiChoice hit with multimillion-rand fine for privacy ‘breaches’

      8 July 2025

      Still in play: Ramaphosa banks on talks to ease US tariff blow

      8 July 2025
    • World

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025

      Jony Ive’s first AI gadget could be … a pen

      30 June 2025

      Bumper orders for Xiaomi’s YU7 SUV heighten threat to Tesla

      27 June 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025

      TCS+ | First Distribution on data governance in hybrid cloud environments

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » World » Warren Buffett offered Uber $3bn

    Warren Buffett offered Uber $3bn

    By Agency Staff31 May 2018
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Warren Buffett. Image: Pete Souza

    Warren Buffett proposed investing US$3bn in Uber Technologies earlier this year but the talks fell apart following disagreements over the terms and size of the deal, people familiar with the matter said.

    The now-dead Uber transaction is reminiscent of the winning bet Buffett’s Berkshire Hathaway made on Goldman Sachs Group during the financial crisis. Buffett invested $5bn in Goldman Sachs, lending his imprimatur to the bank when it was reeling after the collapse of rival Lehman Brothers in late 2008. In exchange, Buffett’s company got preferred stock that ultimately netted Berkshire more than $1.6bn in profit. Berkshire also got warrants to buy Goldman stock that produced an even bigger gain.

    Buffett proposed similar terms to Uber in the wake of a crisis of the ride-hailing company’s own making. Buffett would have effectively lent Uber his sterling reputation, along with some capital, in exchange for cushy deal terms. A spokesman for Uber declined to comment. Buffett did not immediately respond to a request for comment left with an assistant.

    The now-dead Uber transaction is reminiscent of the winning bet Buffett’s Berkshire Hathaway made on Goldman Sachs Group during the financial crisis

    Under the proposed agreement, Berkshire Hathaway would have provided a convertible loan to Uber that would have protected Buffett’s investment should Uber hit financial straits, while providing significant upside if Uber continued to grow in value, said the people, who spoke under condition of anonymity because the discussions were private. Buffett’s initial offer was well above $3bn, one of the people said.

    During negotiations, Uber CEO Dara Khosrowshahi proposed decreasing the size of the deal to $2bn, one person said, hoping to get Buffett’s backing while giving him a potentially smaller share of the company. The deal fell apart after the two sides couldn’t agree on terms, one of the people said.

    Buffett confirmed the talks to CNBC. “I’m a great admirer of Dara. Some of the reported details are not correct but it’s true that Berkshire had discussions with Uber,” Buffett told the news channel.

    Uber’s cash position remains strong. At the end of the first quarter, Uber had $6.3bn in cash, along with a $1.5bn term loan that will be recorded in the second quarter. But the Berkshire discussions show the company’s continued appetite for capital. The discussions with Berkshire Hathaway took place as Uber pursued its term loan.

    SoftBank

    Uber seemed open to taking both Buffett’s investment and the loan, which it closed in March, the people familiar with the matter said. Uber had also just received $1.25bn from a large deal with SoftBank in January. Alongside that direct investment, SoftBank and its consortium purchased $8bn in Uber stock from existing shareholders.

    Coming so soon after that cash infusion, Buffett’s attempt to take a stake in Uber while it was on the rocks may have been too late to squeeze favourable terms from the company.

    In recent months, Uber has been working to find its footing after controversies over its culture and the fatal crash of one of its self-driving cars in March. Khosrowshahi, who has moved to turn around Uber’s public reputation, joined the company in September 2017. While there are still several vacancies on the board and he has yet to find a chief financial officer, he’s helped to calm disputes among Uber’s board of directors and move the company past its flurry of 2017 crises.

    Under Khosrowshahi’s leadership, Uber has mounted a global apology tour, running advertisements that feature the CEO speaking directly to the camera, promising that the Uber is turning over a new leaf.  — Reported by Eric Newcomer and Olivia Zaleski, with assistance from Katherine Chiglinsky, (c) 2018 Bloomberg LP



    Dara Khosrowshahi Uber Warren Buffett
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDatatec names heavy hitter to its board
    Next Article TechCentral’s top 5 podcasts in May

    Related Posts

    South African law is failing gig-economy workers

    12 June 2025

    ‘Afrikaans Uber’ sparks controversy

    27 January 2025

    Uber bakkie service launched in South Africa

    5 December 2024
    Company News

    Powering South Africa’s industrial intelligence with Huawei Cloud’s AI-native innovations

    8 July 2025

    Rain launches a new way to connect. It’s a loop

    8 July 2025

    Cloud costs too high? You’re looking at the wrong problem

    8 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.