Waymo Looks To Raise $4 Billion In Capital Despite Management Departures
Waymo, a subsidiary of Alphabet Inc, is planning on raising up to $4 billion in new capital to help propel its self-driving endeavours, despite ongoing concerns regarding a recent string of departures among its executive staff.
According to Bloomberg, which cited people familiar with the matter, Waymo is considering raising as much as $4 billion from outside investors, as well as eventually listing publicly. However, as Bloomberg notes, the self-driving company must first address a series of departures over the past several months, that may put the company’s long-term strategy into question.
Since the beginning of February, six executives have resigned from Waymo in rapid sequence, including the company’s CEO and CFO. Outgoing CEO John Krafcik’s departure surprised its parent company Alphabet the most, said the individuals, who asked not to be named given that the talks were private. The recent management departures come just as Alphabet has been cutting back spending on projects outside of Google, while Waymo faces increased criticism over not meeting previous commitments to bring its service to more cities or creating a commercial model.
Although Waymo spokesperson Suzanne Philion said that the company does not address “speculation or rumours,” Alphabet CEO Sundar Pichai has previously said that certain subsidiaries occasionally raise outside capital in order to gain broader industry expertise and corporate governance. In 2020, Waymo raised its first round of capital outside of Google’s Alphabet to the tune of $2.25 billion that was later expanded to $3.25 billion, which included investments from Silver Lake Management LLC, Canadian-based Magna International Inc, as well as the Canada Pension Plan Investment Board.
“It just signals that developing this technology continues to be capital intensive,” commented PitchBook senior analyst Asad Hussain on Waymo’s latest fundraising efforts. “The enthusiasm may be greater outside its parent company than inside.”
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
