GM buys SoftBank Vision Fund's stake in Cruise for $2.1 bln

Detroit-based GM added it will make an additional $1.35 billion investment in Cruise, replacing a previous commitment made by the SoftBank Vision fund in 2018.

General Motors said on Friday it will acquire SoftBank Vision Fund's equity stake in the U.S. automaker's self-driving car subsidiary Cruise for $2.1 billion, expanding GM's stake to 80%.

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Detroit-based GM added it will make an additional $1.35 billion investment in Cruise, replacing a previous commitment made by the SoftBank Vision fund in 2018. Softbank, which had previously invested $900 million in Cruise, did not immediately respond to a request for comment.

The purchase of the equity stake gives GM more time to work on self-driving cars before potentially launching a Cruise IPO that could allow other investors including Microsoft, Walmart and Honda to cash in on their stakes in Cruise.

In December, GM announced that Dan Ammann, then chief executive of Cruise, was abruptly leaving the company. A person briefed on the matter confirmed he was dismissed while another source said he and GM disagreed over when to take Cruise public.

Last month, Barra downplayed the need for a quick Cruise public offering. "There's still so much that can be accomplished with a frictionless environment between Cruise and GM," she said.

In February, the California Public Utilities Commission issued permits to Cruise allow for passenger service in autonomous vehicles with safety drivers present.