In recent years, a private equity firm, Fortress Investment Group has received a number of accolades for its growth and development, and in 2007, it became the first company of its kind to be publicly traded on the New York Stock Exchange. Recently, Japanese holding conglomerate, Softbank, purchased Fortress Investment Group for $3.3 billion, creating a mutually beneficial union between the two colossal entities. Softbank, which was founded in 1981 by Masayoshi Son, has grown exponentially since its inception, due to its ability to dabble in a variety of sectors with aplomb, making the Fortress Investment Group acquisition, of little surprise. The shocking aspect of the deal comes in the form of a caveat that restricts Softbank from becoming intimately involved with the operations at Fortress. Because of the regulations levied by the Committee on Foreign Affairs regarding companies outside of the United States, Fortress Investment Group will be allowed to resume operations in a fashion not far removed from what it has known prior to the recent acquisition. In completing the deal, Softbank also had to pay a 39 percent premium to the shareholders of the private equity firm, equating to an additional $8.08 to each share. During the process, Softbank was also in the midst of acquiring Boston Dynamics from Google’s parent company, Alphabet, as well as moving its 25 percent share in the UK’s Arms Holdings, to their Vision Fund.
Ever the astute businessman, founder of Softbank, Masayoshi Son, wanted to ensure that the acquisition of Fortress would be completed without issues, so he sought the public support of United States President, Donald Trump. After pledging to invest $50 billion in the United States, Donald Trump publicly backed Softbank during a congressional conference in 2017. In joining Softbank, Fortress Investment Group was immediately delisted from the New York Stock Exchange – a fact that doesn’t seem to worry co-chair, Wes Edens. In his estimation, this new status will allow Fortress to operate on a more freeform plane, publicly stating, “the team won’t miss the regular earnings calls.”
For details: www.fortress.com/businesses/private-equity