Ousted LiDAR company Luminar's founder plans to take it back
What's the story
Austin Russell, the billionaire founder of Luminar, has expressed interest in acquiring the LiDAR company. The move comes five months after he was ousted as CEO amid an ethics inquiry. Russell's new firm, Russell AI Labs, plans to buy all outstanding shares of Luminar's Class A Common Stock at an undisclosed price. If successful, Luminar would remain publicly traded and could potentially merge with a larger global automotive technology company.
Acquisition details
Proposal made at the invitation of certain shareholders
Russell's acquisition proposal was made on October 14, at the invitation of certain Luminar shareholders and board members. However, the filing did not disclose any names. Despite his removal in May, Russell has remained on Luminar's board. He was supposed to assist the new CEO with transition and technology matters but hasn't signed any SEC filings since his departure.
Business developments
Luminar's financial struggles and recent layoffs
In September, Russell co-founded Russell AI Labs with Markus Schafer, CTO of Mercedes-Benz Group AG, and Murtaza Ahmed, a former partner at SoftBank Vision Fund. The new company invests in transformative AI and frontier technology companies. Meanwhile, Luminar has struggled financially over the past year, laying off employees multiple times and nearly being delisted from NASDAQ.