(Reuters) – Billionaire investor Warren Buffett had proposed to invest $3 billion in Uber Technologies Inc [UBER.UL] earlier this year, but the talks failed following disagreements over the terms and size of the deal, Bloomberg reported on Wednesday, citing people familiar with the matter.
Buffett’s Berkshire Hathaway (BRKa.N) would have provided a convertible loan to Uber that would have protected Buffett’s investment should the ride-hailing company hit financial crisis, the report said.
Uber Chief Executive Officer Dara Khosrowshahi proposed decreasing the size of the deal to $2 billion, giving Buffett a smaller share of the company. The deal fell after the two sides couldn’t agree on terms, Bloomberg reported, citing a source.
In March, Uber increased its self-arranged term loan B to $1.5 billion, a bridge loan designed largely to fund steep cash burn until its planned 2019 IPO.
At the end of March, Uber had about $6.3 billion in cash, thanks in part to a $1.25 billion direct investment by SoftBank Group Corp (9984.T) and others.
Both Uber and a representative for Buffett did not immediately respond to a request for comment.
Reporting by Shubham Kalia in Bengaluru; Editing by Anil D’Silva and Maju Samuel