Microsoft, which in 2021 made an investment into Cruise, will take $800 million impairment charge as a result of GM's actions, according to a regulatory filing. Microsoft said the charge will be recorded in other income and expense and was not included in its second quarter guidance provided on October 30, 2024. It is estimated to have a negative impact of approximately $0.09 to second quarter diluted earnings per share, according to the filing. GM owns about 90% of Cruise. GM said it has agreements with other minority shareholders to buy back shares and raise its ownership to more than 97%. GM previously brought on a number of external investors including Microsoft, Walmart, Softbank, T.Rowe Price and Honda as the company sought to raise the billions in capital needed to bring robotaxis to the public. Cruise raised $2 billion in January 2021 in a round that included Microsoft as well as GM and partner Honda. That raise pushed Cruise's valuation up to $30 billion. The two companies...
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