Billionaire Warren Buffet was reportedly interested in investing over $3 billion in the ride hailing giant Uber earlier this year.
Bloomberg reported on Wednesday, citing unidentified people familiar with the matter, that Buffet offered Uber $3 billion. However, talks fell apart between the two parties because of “disagreements over the terms and size of the deal”.
Buffet later confirmed that his company Berkshire Hathaway had indeed held talks with Uber.
Buffet told CNBC that he is “a great admirer” of Uber CEO Dara Khosrowshahi.
“Some of the reported details are not correct but it’s true that Berkshire had discussions with Uber,” Buffet told CNBC.
One of Bloomberg’s sources said that Buffet’s initial offer was well above $3 billion. However, Khosrowshahi reportedly stepped in and asked that the investment be reduced to $2 billion before the deal fell apart.
Under the proposed agreement Berkshire Hathaway would have reportedly offered Uber a convertible loan, which Bloomberg says, “would have protected Buffett’s investment”, while also “providing significant upside if Uber continued to grow in value”.
Investors typically respond positively to companies that have received investments from Buffet. After Buffett’s Berkshire Hathaway bought 75 million Apple shares in the first quarter the tech company’s stock price rose by 4% in a single day, closing at an all-time high.
Uber, with Khosrowshahihas at the helm, has been working on reforming its image since its controversial founder Travis Kalanick was ousted last year following allegations of operating a toxic corporate culture.
Khosrowshahi also confirmed in a CNBC interview that there were talks between the two companies, but said he didn’t believe “the reporting was entirely accurate”.
