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General Motors Co. Buys SoftBank’s Stake

General Motors Co. announced that it will buy out SoftBank Vision Fund L.P.’s stake in its Cruise division for $2.1 billion, almost four years after the Japanese investment firm joined the automaker in betting on self-driving cars. GM also said on Friday that it will invest an extra $1.35 billion in GM Cruise Holdings LLC, replacing an earlier SoftBank commitment.

After the transaction is completed, General Motors Co. will hold approximately 80% of Cruise, and SoftBank will no longer have any ownership interest in or rights to Cruise. Investors have speculated for years that GM would split off Cruise. Some experts have questioned whether Cruise CEO Dan Ammann’s unexpected resignation in December was an indication that GM wanted to retain the business in-house for longer than investors expected.

General Motors Co. Buys SoftBank's StakeBefore making any judgments about Cruise’s future, GM CEO Mary Barra recently stated that the Detroit automaker wants to continue improving the technology and its plans for a future robot-taxi industry. She did say, though, that separating Cruise could be considered in the future. Before making any judgments about Cruise’s future, GM CEO Mary Barra recently stated that the Detroit automaker wants to continue improving the technology and its plans for a future robot-taxi industry. She did say, though, that separating Cruise could be considered in the future.

The company has also has pushed back its commercialization plans in recent years as it refines its driving capabilities. Cruise said it plans to unveil thousands of robot taxis across U.S. cities in coming years. The company has said Cruise could reap $50 billion in revenue by the end of the decade.

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