SoftBank Is Likely to Buy Fortress Investment Group for $3.3 Billion

SoftBank Is Likely to Buy Fortress Investment Group for $3.3 Billion

Japan’s SoftBank Group Corp. is buying New York’s Fortress Investment Group for a sum of 3.3 billion dollars. This decision was taken so that the two companies could work together on the Japanese technology-driven investment fund.


SoftBank will be paying 8.08 dollar per share to Fortress, which is 39 percent more than the closing price of Fortress as observed on 13th. Fortress will continue to function under the guidance of Wes Edens, Pete Briger, and Randy Nardone and will operate from New York and work within SoftBank but independently.


Masayoshi Son, the founder of SoftBank is in negotiation for the creation of 100 billion dollar Vision Fund from Saudi Arabia and others that would enhance the status of the billionaire of Japan to the biggest investors of technology the world has ever seen.


He also said that SoftBank is looking forward to work with Fortress and this deal is going to reap profits for both the companies.


Fortress closed up their shares at 6.5 percent with a value of 6.21 dollar per share that estimated their market value to nearly 2.4 billion dollars. The shares of SoftBank rose by 0.8-percent.


The ties of SoftBank and Fortress are old. In the year 2014, Son had hired Rajeev Misra who would now be leading Vision Fund.


The credit of SoftBank to undergo the change from a telecom operator to such a big investment company should be given to its chief who has made commendable efforts in its progress.


From the start of the year 2015, SoftBank brought approximately 44-billion dollar investments and acquisitions. This includes the 30-billion dollar takeover of ARM Holdings Plc, the chip manufacturer in UK and 1.2-billion dollar investment in OneWeb Ltd, which is a satellite startup. This data has been given by Boomerang.

Some sources have reported that SoftBank will be closing the investment first round in Vision Fund by the ending of this month. SoftBank has confirmed the contribution of 25 billion dollars and 45 million dollars from Saudi Arabia.


Larry Ellison, the chairman of Qualcomm Inc., Apple Inc. and Oracle Corp., would also be investing 1 billion dollars. Son also said that this merger will provide them with the opportunity to expand their capabilities and scale the business. Together, they would make the Japanese technology of investment funding the most sought-after technology.


Share this post

Post Comment