Business acquisitions normally happen because they benefit both parties. There is a lot of intrigue surrounding SoftBank’s acquisition of Fortress Investment Group. The multi-billion dollar deal was approved by Fortress shareholders, however many people are curious about why SoftBank would be interested in working with Fortress.
Analysts point out that the agreement between SoftBank and Fortress makes sense if you look back at the company’s histories. Both companies have a history of evolving over the years. SoftBank evolved from a PC software wholesaler into a giant firm that has a stake in hundreds of companies. The company was founded by Masayoshi Son in Japan during the 1980’s. After a few years, SoftBank started marketing itself at Computer trade shows. SoftBank eventually acquired a controlling interest in Yahoo. SoftBank believes that its acquisition of Fortress Investment Group is a sign that SoftBank hopes to become one of the largest investment companies in the World.
Fortress Investment Group was founded by Wes Edens and Randy Nardone. Fortress Investment Group has primarily focused on real estate and private equity investments. Fortress manages billions of dollars in assets for their clients. As SoftBank started thinking about potential acquisitions. The company prioritized finding a company that would allow them to become a major global investment firm. SoftBank wanted more structure so that they could improve investor relations.
While SoftBank now owns Fortress’s outstanding shares, they have no real impact on Fortress’s daily operations. Fortress Investment Group will continue to operate as normal. SoftBank says that Fortress will not impact The Vision Fund, which is the largest technology investment fund in the World. Masayoshi Son has promised U.S. President Donald Trump that he will invest billions of dollars into The United States. Wes Edens notes that Fortress is excited that the company will now be privately traded.
Read More: www.fortress.com/businesses/private-equity