Win-Win: $3.3 billion Deal Gives Fortress Investment Group to SoftBank Group

Fortress Investment Group has a proven history of success as a worldwide leader in investment management. It will now bring its model into the fold of SoftBank Group, another bold company with goals of worldwide success. The latter has purchased Fortress for the sum of $3.3 billion in a move that is surprising to those in the industry.

Rob Kauffman, Randal Nardone and Wesley Edens first started Fortress Investment Group in 1998. The company experienced fast growth, eventually claiming assets of over $41.4 billion. They went public and achieved initial success, but had been undervalued of late. In terms of the deal, Fortress will be allowed to remain an independent entity, operating much in the same way they have done in the past. The company will no longer be traded publicly, solving the issue of public undervaluation.

This will allow Fortress Investment Group to continue to focus on financial investment services such as real estate, gaming and loan servicing. Their diverse investment strategy also has led to participation in energy, healthcare facilities and renewable energy investment across the world.

SoftBank Group was initially founded in 1981 by Masayoshi Son as a PC software wholesaler. After a decade of success the company moved into computer magazine publishing and trade shows. Worldwide success came after gaining a controlling interest in Yahoo!. Even before purchasing Fortress Investment Group it had cemented itself as a worldwide phenomenon, with investments in over 400 companies. They have a particular interest in tech companies which rock the boat and go against the norm in their fields.

While SoftBank is located in Japan, Fortress Investment Group will keep New York City as its headquarters. This is an unusual agreement, as typically a deal this large would lead to a more complete synthesis between the two companies. In this case, however, Fortress will be largely unaffected. While this is unusual, it’s due in part to the Committee on Foreign Investments having overseen the deal.

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