Microsoft faces $800M charge for investment in GM’s Cruise
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- Microsoft (NASDAQ:MSFT) expects to incur an $800M impairment charge due to a 2021 investment in Cruise, a robotaxi startup which is majority owned by General Motors (NYSE:GM).
- On Tuesday, General Motors announced it no longer plans to fund Cruise, and intends to pursue the acquisition of minority investor shares.
- “As a result, we expect to record an impairment charge of approximately $800 million in the second quarter of fiscal year 2025,” according to a Form 8-K, filed by Microsoft. “This charge will be recorded in other income and expense and was not included in our second quarter guidance provided on October 30, 2024. It is estimated to have a negative impact of approximately $0.09 to second quarter diluted earnings per share.”
- General Motors said it is shifting funds from Cruise to focus on autonomous vehicle development for personally owned vehicles.