Aurora Set Out Options Including Sale in Memo - Bloomberg
Investing.com
Published Sep 02, 2022 01:29PM ET
Updated Sep 02, 2022 01:45PM ET
Aurora (AUR) Set Out Options Including Sale in Memo - Bloomberg
By Sam Boughedda
According to a report by Bloomberg on Friday, the CEO of Aurora (NASDAQ:AUR) recently set out several options for the company to react to deteriorating market conditions, which included a possible sale to Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT).
Bloomberg's David Welch explained that the company is also concerned with partners pushing out timelines, according to a document they have seen.
The self-driving company is said to have also drafted potential cost-cutting measures and floated ideas such as taking the company private, spinning off or selling assets, and pursuing a small capital raise.
A memo labeled "board discussion pre-read," dated August 3, was accidentally sent to staff by Chris Urmson, who co-founded Aurora. He asked employees not to open it. Bloomberg said an Aurora representative confirmed the document's authenticity.
A spokesperson for Aurora told Bloomberg due to current macro conditions, "every company should be going through the exercise of evaluating its options and long-term strategy."
In the memo, Welch wrote that Urmson said the company is "disinclined" to sell at the current time, but that could change if a bid came in from a "persuasive strategic buyer." He mentioned "potentially appealing landing places," such as Apple, Microsoft, or "potentially a Tier 1," meaning a large auto-parts supplier.
Aurora shares have rallied 18% Friday.
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