Softbank, a Japanese company, is expanding its investments by acquiring a 3.3 billion dollar investment from Fortress Investment Group. Fortress Investment is an investment management firm, the principal offices of the company are in New York, performing operations like capital marketing, corporate mergers, acquisitions, and asset-based investing just to mention a few. The firm directs assets for over 1750 investors, assets worth 43 billion dollars. The groundbreaking acquisition by the big Japanese company is a massive initiative, but it’s not likely to change how Fortress Investment Group works. The companies had to come to a common consensus about leaving the managerial work to Fortress Investment Group management.
These two companies have different backstories, and this acquisition by Softbank at Fortress Investment Group could entirely give it a new perspective. Soft bank was initiated in the early 1980’s and was a wholesaler of Personal Computers’ software. In the early 1990’s the company transitioned its operation to publishing computer magazines and conducting computer trade shows. In 1996, the company’s destiny completely evolved when it obtained a controlling power in Yahoo! Until now, the company is holding over 400 Internet companies, and this has made the company to flourish. Fortress Investment is relatively newer compared to Softbank. Founded about 2 decades ago, the company has sustained its pace with the fast-moving realm of New York City. This has made the company to be one of the well-off alternative asset managers in the globe. The acquisition deal does not relocate the company; it will continue to operate from New York.
Softbank would have limited operations in the management of the 40 billion dollars asset Fortress firm manages because the Foreign Investment of the US agreed to sign the deal if Soft bank guaranteed to have limited managerial tasks in the assets. Nevertheless, the Chief Executive Officer of Soft bank Masayoshi Son promised to invest 50 billion dollars in the United States, and this prompted Donald Trump to praise Soft bank Company in a congress in 2007. Soft bank expanding its territory through investing in Fortress Investment Group has a mutual benefit to both companies. Fortress Investment company will have access to many partners in Asia, which will give the company a new mode of operation. Soft bank will also bring together a collaboration that is favorable and compliant to investor relations. Since the acquisition process is complete, Soft bank is planning to start financial services in London; this move is going to give jobs to approximately 1000 individuals.