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Microsoft sees $800M impairment charge in Q2 linked to GM’s Cruise plans
The Fly

Microsoft sees $800M impairment charge in Q2 linked to GM’s Cruise plans

In a regulatory filing, Microsoft (MSFT) stated that in January 2021, Microsoft announced a minority investment in Cruise, an autonomous vehicle company which is a majority-owned subsidiary of General Motors (GM). On December 10, GM announced its intent to realign its autonomous driving strategy, no longer fund Cruise’s robotaxi development work, and pursue the acquisition of minority investor shares. As a result, Microsoft expects to record an impairment charge of approximately $800M in the second quarter of fiscal year 2025. “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 9c to second quarter diluted earnings per share,” the filing stated.

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