Going public is usually a very big deal for a company and getting delisted is something that most of them tend to dread. This isn’t the case for Fortress Investment Group who happily completed a deal with SoftBank which is allowing the company to be taken off of the NYSE. Fortress was the first company of their kind to present an IPO and become listed on Wall Street, but things were a lot different back then when it came to the economy and the regulations surrounding the stock market. Being publically traded just doesn’t have as many benefits to it as it did in the past.
One of the problems that Fortress Investment Group faced as a public company was being vastly undervalued on the NYSE. While not everyone had this consensus when it came to the company’s true value, many experts agreed that it was worth a lot more than traders were giving it credit for and that their true value would be seen if they were to go private again. People in business know that not every decision or action will start to see huge results immediately. In some cases, it can take years for plans to come to fruition and unfortunately, many shareholders just don’t want to wait this long to see a return on their investment and they will drop the stock.
This has become a big problem for many public companies who went public before regulations were put in place that forced them to issue reports every quarter. This made leaders of these companies likes Fortress choose between the well being of their company in the future and immediate profit for shareholders. Fortress Investment Group believes that this was causing them to lose out on many opportunities.
SoftBank announced that they were setting out into the financial world and Fortress Investment Group would be perfect for their first steps and the rest of their journey. Their team of financial experts have the experience they were looking for. Fortress is still operating independently under SoftBank due to the company having faith in their leadership and team.