Apple has relinquished its seat on the board of directors of Chinese ride-hailing company Didi Global as the latter grapples with opposition from Beijing and a sharp decline in business — reports Bloomberg.
New story: Apple invested $1 billion in Didi – known then as the Uber of China – in 2016. Now, Apple and its M&A chief have given up their rare board seat as Didi has crumbled amid a local government crackdown. https://t.co/AK5ohwZgwT
— Mark Gurman (@markgurman) August 31, 2022
The board seat was occupied by Adrian Perica, Apple’s vice president of corporate development and the head of the company’s mergers and acquisitions strategy.
Apple earned the seat back in 2016 following a $1 billion USD investment in Didi. At the time, Apple CEO Tim Cook called Didi a “great financial investment.”
Perica’s resignation follows a troublesome year for Didi. China has gone on a tirade against Didi and the rest of the country’s internet sector.
Didi organized an initial public offering (IPO) in the U.S. last year, going directly against Beijing’s wishes. The Chinese government responded by removing Didi’s ride-hailing app from China’s app stores. As a result, the company has lost more than 80% of its value.
Didi in May announced plans to delist itself from the New York Stock Exchange. Adding to Didi’s woes, Beijing concluded a yearlong probe into the company last month and fined it $1.2 billion for offences the government said compromised national security.
According to a report from earlier this month, Apple has also slowed its merger and acquisition efforts overall amidst ongoing economic uncertainty.
