- According to Cloud-Data Group’s revised S-1 filing, Warren Buffett’s Berkshire Hathaway is set to invest more than $ 550 million in snowflakes.
- The billionaire investor company will buy approximately 3.1 million Class A shares in a private placement, and 4 million shares from former Snowflake CEO Robert Muglia.
- Salesforce’s strategic venture Arm has also agreed to invest $ 250 million in snowflake stock.
- Berkshire is betting because Buffett has historically been associated with companies he understands, and is involved in a string of Berkshire unusual moves, such as investing in a gold mine and five Japanese trading companies 5% stake acquisition.
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According to the cloud-data company’s revised S-1 filing, Warren Buffett’s Berkshire Hathaway has publicly agreed to invest $ 250 million in Snowflake in the coming weeks.
Based on Snowflake’s expected IPO price range of $ 75 to $ 85, the group of well-known investors will purchase approximately 3.1 million Class A shares in a private placement.
Buffett’s company has also agreed to buy another 4 million Class A shares from former Snowflake CEO Robert Muglia in another transaction, paying an IPO price for each share. It can cost from $ 303 million to $ 344 million, depending on the expected price range.
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If both go through the purchase, Berkshire could spend more than $ 550 million for over 7 million shares, representing about 19% of the 38.3 million Class A shares that Snowflake owes after its offering. are supposed to.
Salesforce has also agreed to purchase $ 250 million of Snowflake stock through its strategic venture arm, Salesforce Ventures, filing shows.
Snowflake declined to comment in an email to Business Insider.
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Berkshire’s latest bet is in the form of Buffett, who likes tech stocks, preferring to invest in the businesses they understand. This adds to his company’s surprise moves, including the first investment in gold miners and deep cuts in JP Morgan, Wells Fargo and other financial companies in the previous quarter.
Buffett’s company revealed a 5% stake in the five largest Japanese trading companies or “Sogo Shosha” last week, and bought Bank of America’s $ 2.1 billion stock from 12 straight trading days to August 4.
Snowflake was founded in 2012 and privately valued at $ 12.4 billion in February. Its revenue grew 121% year-over-year to $ 133 million from three months to July 31, helping to limit its operating loss by 19% to $ 78 million.