Austin Russell Wants to Buy Luminar Technologies | News

Austin Russell Launches Bid to Reacquire Luminar

Austin Russell, the billionaire who initially founded Luminar, is attempting to acquire the lidar technology company just five months after his removal as CEO. This follows an internal investigation concerning ethical considerations.

Takeover Details Disclosed

The details of this acquisition effort were revealed in a Securities and Exchange Commission (SEC) filing made by Russell early Friday. The plan involves his newly established company, Russell AI Labs, seeking to purchase all outstanding shares of Luminar’s Class A Common Stock. The proposed purchase price has not been publicly disclosed.

Potential for "Luminar 2.0"

Should the acquisition be successful, Luminar would continue to be publicly traded. Russell AI Labs is also considering acquiring a larger, globally-focused automotive technology company. This potential acquisition would then be merged with Luminar, creating a comprehensive technology platform referred to as “Luminar 2.0.” Russell may also contribute further investment into this newly formed entity.

Shareholder and Board Involvement

The acquisition proposal was initially presented on October 14th, spurred by discussions with certain Luminar shareholders and at the invitation of specific board members. The SEC filing does not identify these individuals. A source with knowledge of the negotiations, speaking under the condition of anonymity, indicated that some board members initiated contact with Russell in September. Neither Luminar nor Russell AI Labs have yet issued a public response to requests for comment.

Sudden Shift in Leadership

This proposed acquisition arrives unexpectedly, mirroring the abruptness of Russell’s departure in May. Luminar announced Russell’s resignation on May 19th, coinciding with the release of the company’s first-quarter earnings report.

Ethics Inquiry and Legal Challenges

The company provided no specific explanation for Russell’s removal, only stating that the board’s audit committee had completed a review related to the company’s code of business conduct and ethics. The findings of this inquiry remain undisclosed. Shareholders have subsequently filed multiple lawsuits against Luminar, challenging the manner of Russell’s departure and the associated disclosures.

Previous Acquisition Attempt

Russell has prior experience with acquisition endeavors. In 2023, he initiated a bid to purchase Forbes, but the attempt ultimately failed due to a lack of full investor commitment. The process was also complicated by allegations of a connection to a Russian oligarch.

Russell's Post-Departure Role

Following his resignation, Russell remained on Luminar’s board of directors. He was initially intended to provide support to the incoming CEO regarding the transition and technical aspects of the business. However, he has not signed any company filings with the Securities and Exchange Commission since being replaced.

Formation of Russell AI Labs

In September, Russell co-founded Russell AI Labs alongside Markus Schäfer, the CTO and board member of Mercedes-Benz Group AG, and Murtaza Ahmed, a former partner at SoftBank Vision Fund. The company focuses on investing in and developing innovative AI and frontier technology companies. They have already invested $300 million in Emergence, an agentic AI company.

This article was updated to include information regarding Luminar board members contacting Russell.