SoftBank Acquires Fortress Investment Group In Plans To Expand Business In The United States

Around 2 years ago, Peter Briger, the co-chairman of Fortress Investment Group had a talk with Rajeev Misra about making a deal for the firm. Misra had been with the company until 1914 when he left to join the SoftBank Group in a senior position. The Softbank Group is a telecommunications group based in Japan. At the time, Briger’s company was being undervalued by the markets and he knew that the best decision for its future was to go private.

Soon after this conversation, a deal between Fortress Investment Group and SoftBank was made. SoftBank was founded by Masayoshi Son who hopes to turn his company into an international leader by expanding into technology and finance while keeping their communications focus. They believe that they will be able to use Fortress Investment Group’s network to create a financial services arm for SoftBank in the United States.

The deal between SoftBank and Fortress Investment Group will include Fortress being paid $3.3 billion for their company which will give $8.08 per share to their Class A stockholders. At one point, Fortress had been valued at $13.4 billion on the market before becoming undervalued. After the announcement of the deal, their share price rose by almost 29%.

Because of this deal, Fortress Investment Group will no longer be scrutinized by the public market and will be able to make financial decisions that will be good for the company on a long-term basis. One of the areas in which Fortress specializes in is their credit funds. In addition, they also manage traditional private equity pools. They have been able to find success in their bets for subprime loans even while they were having problems with their business in hedge funds.

By buying Fortress Investment Group, SoftBank expects to be able to make a stronger presence in the United States. SoftBank’s CEO is planning on investing $50 billion into business within the United States with a special interest in startups. These plans were discussed during a visit to Trump Tower where he was able to have a meeting with President Trump. Peter Briger and Wesley Edens are staying at the company after the deal. Wesley Edens Is an Investor With an Affinity for the Underdog

LinkedIn : https://www.linkedin.com/company/fortress-investment-group

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