The pros and cons of SoftBank's aggressive investment and acquisition strategy

It is not uncommon that topics about Soft Bank are taken up by American Media these days. Soft Bank made heavy investment to Sprint which ranks third in the world market share of telecommunications for acquisition in 2013. After that, SoftBank tried to set about acquiring T-mobile but abandoned this acquisition by strong resistance from an authority which is concerned about oligopsony in the telecommunications market.

SoftBank has grown as incomparable outstanding holding corporate giant in Japan with aggressive investment and acquisition in the telecommunications market around the world. The most interest thing for people to attract their attention about SoftBank behavior recently is about the way of using tremendous profit which is acquired by Alibaba's IPO. At the same time, consumers come up in conversation about large drop-in-prices in cell phone market.

One of the rumors about the SoftBank's business expansion among this industry officials has it that they implement acquisition of one of business of America Movil.

America Movil is the major telecommunication corporation run by great capitalist Carlos Slim. Their business activity base is Latin America. In Mexico, their business occupies the share of landline in 80 per cent and cell phone in 70 per cent. With this monopolistic market share, this corporation is issued penalties about antitrust law from the telecommunication authority.

America Movil is planning to sell the business sectors of telecommunication and mobile electric wave communication tower. Their final objective is to avoid decreasing profit by those anti-trust penalties to prevent market share from rising more than 50 per cent. It is said that the values of these businesses are from 10 billion dollars to 15 billion dollars so there are murmurs of various kinds of guess of who will be the investor for these businesses.

The name of SoftBank frequently catches our eye in other field of cell phone or telecommunications as well. Their outstanding investment recently is in multimedia. At the beginning of the last October, it was clarified their big investment of 250 million dollars was made in Legendary Entertainment which is known as production of "Dark Night" of the series of Batman and remake version of "Godzilla". Additionally, Legendary and Softbank have a plan to establish a joint venture in order to supply media contents in China and India.