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Ford Writes Off Entire $181 Million Investment in Software Company Following Class Action Lawsuits
NEWS
Ford Writes Off Entire $181 Million Investment in Software Company Following Class Action Lawsuits
Aaron Gordon
58 minutes ago
Back in 2016, Ford made two big splashes in its attempt to be more of a technology and mobility company. The automaker acquired a commuter shuttle service startup called Chariot for $65 million and took a major stake in an enterprise software company called Pivotal Software for $181 million. The two moves were positioned by company executives on future-proofing the legacy automaker.
Three years later, Ford has written off the entire combined $246 million it invested in both companies.
In an earnings report on Wednesday, Ford announced its $181 million stake in Pivotal Software is now worth nothing. This write off caused the company to fall short of investor estimates, according to Bloomberg, sending Ford’s stock down 5.7 percent in after hours trading.
As for Chariot, Ford shut that down in March.
Chariot’s demise was simple: nobody used it. But Ford’s write-off of Pivotal is not so easily explained and exemplifies the complexities of investing in the startup software world.
....
Ford Writes Off Entire $181 Million Investment in Software Company Following Class Action Lawsuits
Aaron Gordon
58 minutes ago
Back in 2016, Ford made two big splashes in its attempt to be more of a technology and mobility company. The automaker acquired a commuter shuttle service startup called Chariot for $65 million and took a major stake in an enterprise software company called Pivotal Software for $181 million. The two moves were positioned by company executives on future-proofing the legacy automaker.
Three years later, Ford has written off the entire combined $246 million it invested in both companies.
In an earnings report on Wednesday, Ford announced its $181 million stake in Pivotal Software is now worth nothing. This write off caused the company to fall short of investor estimates, according to Bloomberg, sending Ford’s stock down 5.7 percent in after hours trading.
As for Chariot, Ford shut that down in March.
Chariot’s demise was simple: nobody used it. But Ford’s write-off of Pivotal is not so easily explained and exemplifies the complexities of investing in the startup software world.
....
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