Warren Buffett’s Berkshire Hathaway Agrees to Take Stake in Snowflake Inc.

Warren Buffett’s Berkshire Hathaway has agreed to buy $250 million worth of cloud-based data platfor Snowflake’s shares in a private placement.

Snowflake revealed in its amended S-1 filing on Tuesday ahead of its initial public offering that Warren Buffett’s Berkshire Hathaway agreed to take a stake in its class A shares in a private placement.

According to the filing, Salesforce Ventures and Berkshire Hathaway would each purchase $250 million worth of its Class A common shares in a private placement at a price per share equal to the initial public offering price.

Snowflake expects to list its shares at a price range between $75 and $85.

“Based on an assumed initial public offering price of $80.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus, each of Salesforce Ventures and Berkshire Hathaway would purchase 3,125,000 shares of our class A common stock,” the filing additionally said.

“The sale of these shares to Salesforce Ventures LLC and Berkshire Hathaway Inc. will not be registered in this offering and will be subject to market standoff agreements with us for a period of up to 365 days after the date of this prospectus and lock-up agreements with the underwriters,” the filing read.

Snowflake added that Berkshire Hathaway has also agreed to purchase 4,042,043 shares of its class A shares from one of the company’s stockholders in a secondary transaction at a price equal to the initial public offering price.

Berkshire is expected to own just over 7.14 million shares if both transactions go through.