- Uber is reportedly nearing a deal that could value its self-driving car unit at $7.25 billion.
- The Wall Street Journal reported Wednesday that Uber is expected to receive $1 billion from a group of investors, including SoftBank Group and Toyota, ahead of its IPO in early May.
- Sources told The Journal that the company is eager to get this autonomous deal in place so that it can plug the self-driving car unit’s value and growth prospects.
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Uber is on track to close a deal that could value its self-driving car unit at $7.25 billion.
The Wall Street Journal reported Wednesday that a group of investors, including SoftBank Group and Toyota, are planning to invest $1 billion into Uber’s self-driving car unit ahead of its IPO in early May. The deal, which was first reported in March, could be announced in the next few days, sources familiar with the matter told The Journal.
Read more: Uber has filed to go public in what could be the biggest IPO in years
These sources said that the company is eager to get this deal in place so that it can plug the unit’s value and growth prospects, The Journal wrote.
A spokesperson for Uber did not immediately respond to Business Insider’s request for comment.
In paperwork filed for its IPO, Uber outlined how important self-driving cars will be to the future of its business.
“We believe that autonomous vehicle technologies will enable a product that competes with the cost of personal vehicle ownership and usage, and represents the future of transportation,” it wrote, adding that this “will be an important part of our platform over the long term.”
This is a costly business for the company, however. In 2018, it spent $457 million on its autonomous vehicle-focused Advanced Technologies Group (ATG) and other tech initiatives — including Uber Elevate, its futuristic urban aircraft program, Business Insider previously reported.
And it is not without risk. In 2018, the company halted testing of its self-driving cars after a vehicle killed a pedestrian in Arizona.
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