Softbank, Saudi Arabia Ties Up To Come Up With Huge Investment Fund
Japanese internet an telecommunications giant Softbank Group Corp. is now teaming up with the Saudi sovereign-wealth fund to create a multibillion-dollar investment. This a partnership that combines deep pockets with one of the most ambitious investors.
Softbank had announced Thursday that it would form a new investment that could made them invest a $100 billion in technology.
Softbank is led by chief executive Masayoshi Son, is know for its bold and wide-ranging bets, ranging from Chinese e-commerce giant Alibaba Group Holding Ltd. And US mobile carrier Sprint Corp to UK chip designer ARM Holdings PLC which it bought for $32 billion.
Softbank shares rose as much as 2 percent in early Tokyo trading. The stock has gained 5.8 percent this year before Friday.Softbank doesn't want to give any comment thus the company said that in a statement to the Tokyo Stock Exchange that the fund will be reflected on its consolidate financial statement without giving them further details.
The company's high-speed internet and wireless service in Japan generated 1.16 trillion Yen($11.2 billion) of earnings before interest, taxes, depreciation and amortization in the fiscal year ended March 31. Softbank has now a 3.5 trillion yen of bonds maturing in the next year according to a data that was compiled.
Saudi Arabia is now preparing itself for the twilight of the oil change by expanding its Public Investment Fund, which could eventually control more than $2 trillion. The Deputy Crown Prince Mohammed Bin Salman said in a news. The fund had made $3.5 billion investment in ride-share company Uber Technologies.
In the real of tech venture capital, the figures stated by Softbank and Saudi fund are huge. According to the National Venture Capital Association, the said $100 billion fund is the same amount that was raised by the U.S venture capital funds over the past two and a half year.