The Acquisition Of Fortress Investment Group

Over the years since Soft Bank came into existence, the organization has had one focus after the other. However, this has helped the company to grow as well as becoming more successful. The company has already laid the foundation for its next step of development. Soft Bank has acquired Fortress Investment Group, an organization that is leading in the investment management sector. Soft Bank aims to become a leader in the world when it comes to asset management. The acquisition cost the organization $3.3 billion, but this will not affect the way the Fortress Investment Group will run its operations. In the agreement, Soft Bank was willing to remain hands off concerning the Fortress considerate assets management.

For one to understand this transaction between Fortress Investment Group and Soft Bank, it is essential to consider the background of these two organizations. Soft Bank came into existence in 1981 by Masayoshi Son. By this time, the organization was PC software wholesale. By the start of 1990, the company had shifted its focus to computer magazine publishing and computer trade shows. In 1996, the company’s fortunes took a decisive turn when it bought a controlling stake in Yahoo. Since this time, the organization has grown as well as evolving considerably. Presently, Soft Bank has stakes in over 400 internet organizations and is well known for its focus in tech startups. However, with its acquisition of Fortress Investment Group, it is evident that the organization wants to venture into a new direction.

Fortress Investment Company is newer in the business world when compared to Soft Bank. Fortress was established in 1998 by Randy Nardone, the Chief Executive Officer and Wes Edens, the co-chair. The organization grew to become the leader in the alternative asset investment in the world. The company that has been running for over 20 years is managing assets of over 1750 private investors as well as institutional clients. Even after the deal, Fortress will continue running its operations independently with its main offices remaining in New York City.

This deal sounds interesting given the much efforts that Soft Bank to acquire Fortress that it will have no control over how fortress controls its almost $40 billion worth of assets. The main reason behind this is the fact that Soft Bank is a foreign organization and it is subject to the Committee on Foreign Investment oversight in the U.S. The only way that Soft Bank would sign the deal was to promise that it will have little power on how Fortress runs its operations.

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