Japanese mogul pledges $50 billion US investment

The deal was made after Softbank CEO Masayoshi Son met with President-elect Donald Trump in NY, with Trump announcing the deal via Twitter on Tuesday night.

In front of the gathered reporters, Trump and Son said they’d struck a deal in which Son’s SoftBank would invest $50 billion in the USA and bring 50,000 jobs to the country. In a Twitter comment, Trump claims that Son said he would never have made the investment if Hillary had won the Presidential race.

SoftBank announced in October that it would dedicate at least $25 billion toward the $100 billion so-called SoftBank Vision Fund to invest in global technology companies in the next five years.

Taiwan’s tech giant Foxconn confirmed Wednesday it is in “preliminary discussions” over a new U.S. investment after Trump announced the $50-billion deal with Japan’s SoftBank that would also involve the firm.

He’s had mixed results in the US since SoftBank bought what is now an 80% stake in Sprint for $21.6 billion, and lost ground to telecom rivals such as T-Mobile.

SoftBank already owns most of USA wireless carrier Sprint Corp., and several years ago aggressively pursued an acquisition of rival T-Mobile US Inc. In July, he purchased British chip designer ARM Holdings for $32 billion in cash and he holds a large stake in China’s Amazon competitor Alibaba.

Join the CIO New Zealand newsletter! SoftBank’s shares jumped to the highest in 15 months in Tokyo trading.

Softbank is one of the world’s biggest technology companies and is run by its founder, Japanese entrepreneur Masayoshi Son.

The U.S.is likely to become a country with various business opportunities as the Trump administration will carry out deregulation in a variety of fields, he said. Son left Trump Tower after being escorted down the elevator by the president-elect, who touted the pledge before waiting investors.

Foxconn Technology Group based in Taiwan, which is the maker of Apple’s iPhone as well as other products, said on Wednesday that it was expanding its operations. “We (will) invest into the new startup companies in the United States”.

Donald Trump’s four-year term as USA president will start following his inauguration on 20 January. “It could give an impression that his company is friendly to the U.S”. In 2013, the company paid $22 billion for a controlling stake in U.S. telco Sprint in 2013.

Trump claims $50 bn SoftBank investment due to his election win was posted in Business of TheNews International – https://www.thenews.com.pk on December 07, 2016 and was last updated on December 07, 2016.

“Trump is a shrewd businessman, and he has said he will put America first”.