Banks are often buying other banks, but when the news hits that a bank purchased a large investment company, it’s going to get some press. SoftBank recently purchased Fortress Investment Group for more than $3 billion, and it’s setting in that there is a good reason for the acquisition. The sales of the investment group was approved by shareholders in July of 2017, but the transaction was not final until the end of the year. Why does the purchase make so much sense?
Consider that looking into the history of these two companies is similar. The more you learn about each of them the more you realize that this made perfect sense. Both of these companies have shifted gears numerous times over the years, but they also seek out the opportunities that are emerging. Technology is the foremost opportunity because it’s always evolving.
When SoftBank was first founded by Masayoshi Son, the company was leveraged as a wholesaler for PC software. Over the years, SoftBank has invested in tech companies, now able to share that they hold stakes in several hundred software companies. Most of these companies are focused on offering products that are most commonly used for the purpose of making technology work better including:
• Tech services
• Fixed line telecommunications
• Internet service
It was a great time for Fortress Investment Group to enter into the picture, mainly because their goal always has been to become the largest investment company in the world. The founders, all well-educated and offering vast knowledge of law and finance, have made this company soar beyond their wildest dreams. Although they have always shifted gears as often as SoftBank, Fortress Investment Group has always remain focused on being adaptable and willing to change on the route to success.
Despite the acquisition, Fortress Investment Group will still manage their daily operations as they see fit, while SoftBank’s role is merely to lean on them for the investment piece as they find new opportunities.
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