According to new reports, the self-driving company Uber recently purchased cost the company around $220 million. The price is far lower than the expenditure that the company had expected.
In a widely reported deal made in August 2016, Uber purchased self-driving truck company, Otto. At the time, industry analysts whispered that the cab provider had paid the equivalent of 1% of its stock for the purchase. The total value of the deal was thus placed at $680 million. However, newly surfaced information has shown that the company may have clinched the deal for a more reasonable price.
The information came to light in the legal battle raging between Uber and Alphabet owned self-driving company, Waymo. The new information proves that Uber could have made the deal in as little as $220 million.
Legal documents unearthed during the trial showed that Uber did start off with a hefty sum. The company paid 12 million shares for Otto along with a number of cash bonuses which were issued to employees. However, Uber managed to save money through some unforeseen circumstances that came to pass.
Half of the original shares paid to Otto were pocketed by Otto’s ex-CEO, Anthony Levandowski. However, Levandowski was fired by Uber in May after he was accused of stealing trade secrets from his former employer, Google.
In a statement made to CNBC, Uber confirmed that Otto’s ex-CEO received none of the shares placed under his name before he was fire. Therefore, half of the original amount ultimately found its way back to Uber’s coffers. As such, the company ended up paying far less for Otto than it had earlier anticipated.
However, despite the deal Uber lucked into, Otto has cost Uber dearly in other ways. Since its purchase, Otto has been a bit of a controversy’s child and has cost Uber a substantial amount in terms of both reputation and legal fees.