Chronicle of the Week recently published Haley Thompson’s article “With $3.3-Billion Acquisition of Fortress Investment Group, SoftBank Looks to Branch Out.” The article details the recent acquisition of a leading investment management firm by SoftBank. SoftBank was created nearly forty years ago in Japan and is seeking to take the company to the next level with the recent acquisition. The $3.3-billion deal will have little impact on the way Fortress Investment Group will function on a day to day basis. SoftBank even made it a part of important business deal to manage the company in a hands-off manner.SoftBank was founded by Masayoshi Son in the early 1980’s when he wanted to become a wholesaler of PC software.
However, the company soon grew to computer publishing as well as trade shows. In 1996, the fate of the company changed when it gained the controlling interest of Yahoo! The company has grown ever since with more than 400 internet based companies under its wing. It is also well known for its interest and development of technology startups.However, the recent acquisition of Fortress Investment Group reveals that SoftBank is ready to evolve in another way. The company was co-founded by Randy Nardone and Wes Edens in 1998. It soon grew into one of the largest asset management company that was dedicated to alternative assets. The company has more than 1750 private investors.
The company will continue to act independently and will stay in New York City. SoftBank will not have much say in how the company manages its $40 billion in assets. Many transactions are subject to the view of the Committee on Foreign Investments company in the U.S. which is why Fortress would only sign off on the deal if SoftBank relinquished the power to say how the assets are managed.Fortress Investment Group has seen a lot of exciting development in the last decade or so. One of the first big headliners for the company was when it went public in 2007. It was the first company of its kind to be publically traded on the New York Stock Exchange. Softbank has also acquired and developed the Vision Fund.