Chief at SoftBank Meets with Donald Trump, Fuels Hope for Megadeal
SoftBank is already the owner of the majority of Sprint Corp a wireless carrier based in the U.S. and a number of years ago pursued aggressively an acquisition of another rival T-Mobile. However, Son gave up that bid because of Obama administration antitrust regulators opposition.
After the meeting, Trump held with Son that lasted for 45 minutes on Tuesday, Trump praised Son as one of the industry’s great men, and right away investors concluded that SoftBank could have a better opportunity with the new White House administration.
Shares of the telecommunications and internet giant based in Japan were up 6.2% on Wednesday in Tokyo and closed at the highest in over a year. The increase added over $4 billion to the market capitalization of the company.
A market analyst said that through forging better ties with the soon to be president of the U.S., Son raised the expectations that he may pursue the merger one more time.
Son said following the meeting he held with Trump that he would be investing $50 billion in the United States and would create as many as 50,000 jobs.
The details of that plan are still not clear, but Son said he is going to invest in startups and the money would come from an investment fund of $100 billion he is planning to start shortly with the sovereign wealth fund of Saudi Arabia and others.
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.
Foxconn chief Terry Gou is friends with Son and the logo of Foxconn appeared next to a piece of paper Son held when he spoke to the press following his meeting with Trump.
Son said that he was expecting regulatory policies of the government to change under the presidency of Trump because he would be deregulating many things. He said that those decisions were great and that the U.S. would be great again.
Son did not discuss any possible deal for T-Mobile. A SoftBank spokesperson at its Tokyo headquarters did not comment when asked about T-Mobile.
Son has worked hard to try to turn around Sprint since his company took control of the mobile carrier in 2013 for $22 billion.