Warren Buffett’s company invests $ 570 million in a tech startup

The American company Berkshire Hathaway by Warren Buffett intends to invest more than $ 570 million in the Snowflake company, which deals with cloud technologies, news.finance.ua writes.

This became known after Snowflake announced the price range for its upcoming initial public offering. The company wants to get an estimate of $ 23.7 billion, writes the Financial Times.

Snowflake announced that Berkshire Hathaway and Mark Benioff’s Salesforce Ventures will directly buy shares from Snowflake for $ 250 million at the time of listing. In addition, Buffett’s company will buy another block of shares for over $ 320 million from one of Snowflake’s investors.

Buffett has long been known for avoiding investments in the tech sector because he sees him as vulnerable to sudden surges in the stock market. In 2011, he still made a big bet on IBM, which was later overtaken by competitors in the cloud technology. Its shares are about 30% cheaper than when Berkshire Hathaway invested in it. Buffett later sold shares in IBM and invested in Apple instead.

Snowflake expects its shares to be sold during the IPO at prices ranging from $ 75 to $ 85 per share. The company plans to raise $ 3.24 billion.