Mubadala to buy Fortress from SoftBank

According to a report by the Financial Times, SoftBank is in advanced discussions with Abu Dhabi-based sovereign wealth fund Mubadala to sell its asset manager, Fortress Investment Group, for up to $3 billion. The talks have been ongoing since last year, and an announcement of the deal could come later in May, as per three people familiar with the matter cited in the report.

SoftBank CEO, Masayoshi Son, had said last year that he was in talks to sell Fortress, but did not disclose the valuation. Son is said to be in favor of the deal and hopes to get a price close to what SoftBank had paid for Fortress in 2017. SoftBank had acquired Fortress for $3.3 billion.

The deal would help SoftBank pay off its debt. SoftBank has been raising money by selling some of its assets, including $2 billion worth of shares in Uber Technologies and $14 billion worth of shares in its Japanese wireless unit.

Fortress, which was founded in 1998, managed assets worth $53 billion as of March 31. The company’s portfolio includes investments in real estate, private equity, and credit funds. SoftBank, Fortress, and Mubadala have not commented on the matter.

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