Cruise, a U.S. self-driving vehicle company majority-owned by General Motors Co, told Reuters on Friday that a U.S. national security panel approved a $2.25 billion investment in the firm by Japan’s SoftBank Corp. SoftBank has come under increasing U.S. scrutiny over its ties to Chinese firms in the face of an escalating trade and technology war between Washington and Beijing. It is in the process of raising its second $100 billion investment vehicle, dubbed Vision Fund, after deploying its first one of equal size.
Reuters reported that Chinese gaming company Beijing Kunlun Tech Co Ltd has been seeking to sell Grindr LLC, the popular gay dating app, after CFIUS said its ownership posed a national security risk. CFIUS halted a plan last year by Ant Financial, owned by the chairman of China’s internet conglomerate Alibaba, to acquire MoneyGram International Inc.
The Cruise deal was structured to allow $900 million of the investment to be disbursed initially, with the remainder provided once Cruise AVs are ready for commercial deployment and contingent on regulatory approval. The two tranches would combine to give SoftBank a nearly 20 percent stake in Cruise. Read more via Reuters