Categories: Stock Market News

Microsoft expects $800 million impairment cost in Q2 2025 over Common Motors’ Cruise exit


(Reuters) – Microsoft (NASDAQ:MSFT) expects to file an impairment cost of round $800 million within the second quarter of fiscal yr 2025 over Common Motors (NYSE:GM)’ exit of the Cruise autonomous driving enterprise, the tech large mentioned in a submitting on Wednesday.

Common Motors mentioned on Tuesday it’s ending robotaxi improvement, by which it invested greater than $10 billion since 2016, citing competitors within the robotaxi market and the “time and assets” that will be wanted to scale the enterprise.

Microsoft acquired a minority stake in Cruise in January 2021 in a mixed new fairness funding of greater than $2 billion, which included institutional buyers equivalent to Honda Motor Co (NYSE:HMC).

The Home windows maker additionally mentioned the impairment cost would have a unfavourable affect of about 9 cents on its second-quarter earnings per share.

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