Fortress Investment Group Will Continue To Operate Independently After SoftBank Acquisition. SoftBank, which was founded approximately forty years ago, is known for branching out in all directions while continuing to grow more successful. The Japanese based company recently acquired Fortress Investment Group, which will help make Softbank one of the world’s largest investment firms. However, not much is going to change for the New York based company Fortress Investment Group.
Though SoftBank paid over $3 billion for Fortress Investment Group, it will not have much say on how Fortress manages its assets, which are estimated to be worth over $40 billion. This is due to the fact that the Committee on Foreign Investments would not approve the deal unless SoftBank agreed to the limited management. This is one of many hoops that SoftBank has to jump through in order to acquire Fortress Investment Group.
SoftBank needed to settle other transactions that they had in the fire. They also had to pay a premium price for Fortress shares. Fortress shareholders were paid over $8.00 per share. To help ensure that the transactions would be a success, CEO of SoftBank Masayoshi Son, paid a visit to newly inaugurated President Donald Trump. He promised President Trump that if he would go to bat for him with Congress, Son would invest $50 billion in the U.S.. Masayoshi Son finally got what he wanted, but it took a lot of negotiating along the way. SoftBank Group Completes Acquisition of Fortress Investment Group.
As for Fortress, the acquisition has been just another development over decades of exciting developments. Fortress’s biggest development occurred in 2007 when it became the United States’s first private equity firm to be traded publicly. However, with the acquisition, Fortress will now be removed from the New York Stock Exchange. According to Wes Edens, co-chair of Fortress, the company is excited about being private again. Another big benefit for Fortress is that it will have access to partners in Asia. This will allow for Fortress to branch out in other directions.
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