3/12/2019

Waymo Looking for Outside Investors?

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Alphabet Inc.’s Waymo autonomous-vehicle affiliate is searching for new outside investors, including European carmakers, a source tells The Information.

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Alphabet Inc.’s Waymo autonomous-vehicle affiliate is searching for new outside investors, including European carmakers, a source tells The Information.

The San Francisco-based tech newsletter says likely candidates include Fiat Chrysler Automobiles, Jaguar Land Rover and Volkswagen.

Industry insiders and former employees estimate that Waymo costs Alphabet a manageable $1 billion per year. But the newsletter notes that Alphabet Chief Financial Officer Ruth Porat has been urging the holding company’s many operating units to controls costs.

Porat also has authorized other Alphabet units to pursue outside financing sources. The newsletter speculates that Alphabet isn’t eager to give up significant equity in Waymo. It suggests that Waymo may be pursing relatively modest equity deals with carmakers that have taken minority stakes in multiple developers of software for self-driving vehicles.