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Aurora considers potential sale to Apple or Microsoft

by Babu Patil
Aurora considers potential sale to Apple or Microsoft
  • Many electric-vehicle and self-driving startups are scrambling to launch vehicles and burning cash rapidly.
  • Aurora Chief Executive Chris Urmson floated measures including cost cuts, taking the company private, and spinning off or selling assets. Shares of the company closed 15% higher on Friday but have lost nearly 80% this year.

Aurora Innovation Inc. CEO Chris Urmson suggested several options for the self-driving tech startup to tackle adverse market conditions, including a possible sale to Apple or Microsoft.

During the market boom, several electric-vehicle and self-driving startup companies received capital through initial public offerings (IPOs) and mergers with blank-check enterprises. Now, in the midst of a sluggish economy and supply-chain bottlenecks, these companies are scrambling to launch vehicles and burning cash rapidly amid a bleak economy and supply-chain snarls.

Reuters said in 2020 that Apple was working on technology for self-driving cars and intended to make a passenger vehicle by 2024.

Microsoft has put money into Cruise, a company in San Francisco that makes self-driving cars and is mostly owned by General Motors.

Urmson, who co-founded Aurora after directing Alphabet’s self-driving car project, reportedly proposed cost cutbacks, taking the company private and spinning off or selling assets.

The company’s shares closed 15% higher on Friday but are down nearly 80% this year after coming public with a blank-check firm late last year. It’s worth $2.4 billion.

Aurora delayed delivery of its scalable autonomous freight vehicles by a year to the first half of 2024.

Urmson also advised buying companies with $150 million to $300 million in cash, freezing employment, and laying off workers, Bloomberg said....

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