SoftBank CEO Masayoshi Son recently told President-elect Donald Trump that he would create over 50,000 new jobs in the U.S. through a $50 billion investment in startups.
SoftBank had previously announced $100 billion technology fund and the money is going to come from this fund.
The pledge will help Softbank to head to a good start with Trump after failing to win the Obama administration’s backing for a plan to consolidate the mobile-phone market.
It was Donald Trump who announced the job-creation pledge, taking to Twitter after a meeting with Son Tuesday. “Masa said he would never do this had we not won the election!” Donald Trump tweeted.
Son hadn’t previously committed to creating a specific amount of jobs through the investment vehicle even though some investments were unveiled in October.
The CEO of Softbank is famous for making bold projections. In 2010, he famously laid out a 300-year plan for his company that involved investing in 5,000 companies by 2040 to give his unborn successors a base to build on.
SoftBank and Saudi Arabia’s PIF(Public Investment Fund) unveiled their new venture weeks before the U.S. elections. The two have been talking to other investors for the $30 billion they need to reach their $100 billion goal. When plans for the fund were first announced, Son said that he planned on being the biggest investor in technology over the next decade.
SoftBank’s U.S. unit, No. 4 U.S. wireless operator Sprint, rose 1.5 percent at $8.17 at the close. T-Mobile US Inc., which has long been mentioned as a possible merger partner for Sprint, rose 1.8 percent to $55.99 on speculation Son’s pledges could aid an eventual deal.
The $50 billion U.S. investment by SoftBank isn’t intended for mergers and acquisitions such as T-Mobile, said the person familiar with the matter, who asked not to be identified discussing private information.