Deals
Buffett Proposed $3 Billion Uber Investment But Deal Crumbled
- Arrangement was similar to Berkshire’s post-crisis Goldman bet
- Uber investment said to fall apart over terms, deal size
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Warren Buffett proposed investing $3 billion in Uber Technologies Inc. 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 Inc. made on Goldman Sachs Group Inc. during the financial crisis. Buffett invested $5 billion in Goldman Sachs, lending his imprimatur to the bank when it was reeling after the collapse of rival Lehman Brothers Holdings Inc. in late 2008. In exchange, Buffett’s company got preferred stock that ultimately netted Berkshire more than $1.6 billion in profit. Berkshire also got warrants to buy Goldman stock that produced an even bigger gain.