SoftBank is backing out of its deal to provide $100 million in funding to a new hardware startup led by Andy Rubin, the man who started Android and sold it Google, according to The Wall Street Journal.
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SoftBank backs out of $100 million investment in a new smartphone startup from the guy who started Android
The startup, Essential, is a new hardware company working on a smartphone and other gadgets.
Andy Rubin.
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The startup, called Essential, is working on a high-end smartphone designed to compete with Apple's iPhone, sources previously told Business Insider.
Business Insider has also heard that Essential was close to completing a large, $100+ million round of funding from major investors that it was expected to announce soon.
Essential's first phone is expected to launch this spring or summer.
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The WSJ report says SoftBank's investment would've valued Essential around $1 billion. It's unclear if SoftBank's investment was supposed to be part of the company's new $100 billion Vision Fund, which will invest in tech companies. SoftBank is expected to finish raising for its Vision fund soon. Apple has already committed $1 billion to the fund.
The WSJ report also says that SoftBank planned to use its marketing muscle to promote Essential's new phone, which would've been key for a new player entering the crowded high-end smartphone market dominated by Samsung and Apple.
A spokesperson for Essential declined to comment. A spokesperson for SoftBank did not respond to requests for comment.
Biz Carson contributed reporting to this story.
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