Japan-based telecom giant SoftBank, which is also parent company of Sprint, signed an MoU with Saudi Arabia’s Public Investment Fund
SoftBank Group created its Vision Fund, with the main focus of making global investments in the technology sector. The Japanese group said the fund will be managed in the United Kingdom by a subsidiary and will deploy capital from SBG and investment partners.
The telecom group said it expects to invest at least $25 billion over the next five years.
SBG also revealed it has recently concluded a nonbinding memorandum of understanding with the Public Investment Fund of the Kingdom of Saudi Arabia under which the latter will consider investing in the SoftBank Vision Fund and becoming the lead investment partner, with the potential investment size of up to $45 billion over the next five years.
The Japanese firm said it is in talks with other global investors to participate in the initiative, with the overall potential size of the fund set to go up to $100 billion.
“With the establishment of the SoftBank Vision Fund, we will be able to step up investments in technology companies globally,” noted SoftBank Chairman and CEO Masayoshi Son, in a statement. “Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector.”
“The Public Investment Fund is focused on achieving attractive long-term financial returns from its investments at home and abroad, as well as supporting the Kingdom’s Vision 2030 strategy to develop a diversified economy,” added Deputy Crown Prince Mohammed Bin Salman, chairman of PIF.
The Japanese company noted the main objective of the initiative is to accelerate its global growth strategy through the investments and alliances with portfolio companies of the fund. The company said the fund is set to make investments drawing upon its operational experience in the technology sector.
SoftBank robot for China
In related news, SoftBank Robotics Holdings announced plans for the rollout of its humanoid robot “Pepper” in the Chinese market.
Alibaba Robot, a joint venture between Alibaba Group and SoftBank, said the plan is to work on the robotic business in China with further plans to offer Pepper to developer customers. The robot is said to be powered by “YunOS,” an operating system developed by Alibaba.
