GM to buy out SoftBank's stake in Cruise self-driving unit

GeneralMotors is acquiring SoftBank's stake in Cruise and pouring more money into the self-driving unit it purchased in 2016 The auto giant is buying out SoftBank Vision Fund 1's equity ownership into the company that is worth $2.1 billion. In addition, it has committed to investing an extra $1.35 billion in Cruise to replace the funding SoftBank promised in February after the self-driving car company started offering robotaxi rides in San Francisco.

Mary Barra said that GM is buying SoftBank's equity ownership.

"Our increased investment position not only simplifies Cruise's shareholder structure, but also provides GM and Cruise maximum flexibility to pursue the most value-accretive path to commercializing and unlocking the full potential of AV technology."

SoftBank has struggled with debt and the value of its properties. It may no longer be interested in an investment that won't make money. In February, SoftBank CEO Masayoshi Sonyoshi said the company would sell a good chunk of assets after the multi-billion sale to NVIDIA fell through.

GM could have bought out SoftBank, which would have been a step towards spinning out Cruise or taking it public. A GM spokesman told the publication that the automaker will consider all opportunities to create value for its shareholders, and that it has not ruled out a future IPO of Cruise.

The California Public Utilities Commission granted Cruise permission to charge for rides in the state if there is a human behind the wheel. The agency is still reviewing Cruise's application for a Driverless deployment permit.