Acquisitions are normal in the world of business. For example, for the growth of business and expanding it in a logical sense, the investment firms acquire other investment firms. Acquisitions play a vital role in business for the involved parties; however, it may sometimes make little or no sense to the outside world.
The case is indeed referring to the SoftBank’s acquisition of Fortress Investment Group. In July 2017 the 3.3 billion dollar deal which was approved by Fortress shareholders, became official in December 2017. The interest in a business deal with fortress by Softbank, a multinational company focusing on internet startups and tech, raised questions in many people’s minds.
If we put together the histories of both companies Softbank and Fortress, then the business deal between them will make more sense. Each firm is constantly seeking in engaging themselves into new areas of interest to branch out. Both companies are also interested and planning to rebrand themselves through the years as well.
SoftBank has a history of PC software wholesaler when founded by Masayoshi Son in 1981. In the present, the company owns stakes in over 400 companies and more by providing a variety of services. Their services include fixed-line telecommunications, internet, e-commerce, broadband, tech services and many more. Softbank has confidently clarified its intention of eventually becoming one of the biggest leading investment corporations in the world, after acquisition of the Fortress Investment Group.
Fortress Investment Group, for its part hasn’t been a shape-shifter as much as Softbank, but the company has always shown interest in adapting and changing to remain a persistent competitor. The Fortress was founded by the co-chairman Wes Edens and CEO Randy Nardone in New York City in 1998. Fortress Investment Group built businesses around private equity investments, hedge funds and real estate through the years.
On behalf of more than 1,750 institutional clients and private investors in the world, more than $40 billion in assets are managed by Fortress Group. It’s expected that the company will carry on working in the same manner despite the acquisition.
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