SoftBank Acquisition of Fortress Investment Group is a Game Changer
Acquisitions in the business world really make sense but the involved parties have to know their goals and abide by them. business acquisition is not an easy process and you have to know the strengths and weakness of the acquiring company. business acquisition is not a new business undertaking in today’s business sector. Acquisition strategies have graced the business world for many decades and many companies have mastered this art. The recent SoftBank’s acquisition of Fortress Investment Group has caught many investors as a surprise.
The acquisition by SoftBank was approved by Fortress stakeholders in 2017. However, a lot of talking has been going on concerning the deal. Many investors have been wondering, why should a company like SoftBank that deals with internet and technology services and products want to acquire Fortress. Fortress Investment Group was established by Wes Edens and Randy Nardone and it has been focusing on real estate, private equity, and hedge funds investments.
This business acquisition move is imperative in the sense that both companies have profound histories and have at all times been looking for other markets to indulge in. More so, both companies have shown interest in rebranding and restructuring themselves. The $3.3 billion acquisition is not a new adventure for SoftBank. The company owns stakes in more than 400 firms and it has established itself as one of the best technology, e-commerce, broadband and communication services provider.
With the recent acquisition of Fortress, it is a clear indication that SoftBank wants to rule and dominate the global investment sector. It is a message well sent to its competitors that it is ready to take over the market and become one of the largest investment conglomerates in the world. SoftBank has over the years been looking for a company to acquire and this deal has cleared the doubts of many naysayers. Acquiring Fortress Investment Group is not a deal to regret as Fortress has been managing more than $40 billion in assets on its own.
By investing more than $3.3 billion to acquire Fortress, SoftBank owns all the shares owned by the company. The key benefit of investing such money in Fortress is that SoftBank will achieve the structure and muscle it has been yearning for to become a world-class company. For fortress investment group, it is a great deal that will allow it to still manage its $40 billion assets without any worries. For SoftBank, it will be able to undertake its long-term goals and meet its visions without any regrets or regulatory obstacles affecting is investments.