Alphabet Inc (NASDAQ:GOOGL) reached a surprise landmark settlement with Uber yesterday, ending a long and bitter fight over trade secrets that Uber allegedly stole from Google’s self-driving unit, Waymo.
Business Insider has the details on the legal settlement, which caught just about everyone off guard:
Uber and Waymo have settled their high-stakes legal battle over self-driving-car technology, with Uber agreeing to pay Waymo $245 million in equity.
On Friday morning, as the first week of testimony in the explosive trial was drawing to a close, the two companies announced a surprise settlement over allegations that Uber misappropriated trade secrets of Waymo, the self-driving-car unit owned by Google’s parent company, Alphabet.
Under the terms of the agreement, Uber will give Waymo a 0.34% stake in its company, valued at$245 million. That means Uber, the largest ride-hailing service on earth, is currently worth around $72 billion.
Uber’s CEO, Dara Khosrowshahi, expressed “regret for the actions” that led to the lawsuit. Waymo said the following:
“We have reached an agreement with Uber that we believe will protect Waymo’s intellectual property now and into the future. We are committed to working with Uber to make sure that each company develops its own technology. This includes an agreement to ensure that any Waymo confidential information is not being incorporated in Uber Advanced Technologies Group hardware and software. We have always believed competition should be fueled by innovation in the labs and on the roads and we look forward to bringing fully self-driving cars to the world.”
Alphabet Inc shares closed at $1,046.27 on Friday, up $38.56 (+3.83%). Year-to-date, GOOGL has declined -0.68%, versus a -2.01% rise in the benchmark S&P 500 index during the same period.