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SoftBank to invest $50 billion in U.S., announces Trump; not all ready to give him credit

Dec 07, 2016 04:45 AM EST

President-Elect Donald Trump, who is having a busy time in the U.S.A's transition phase, announced on Tuesday (December 6) that Japanese telecommunications giant SoftBank Group has planned to invest $50 billion in the country and create 50,000 new jobs.

Trump, who met SoftBank's CEO Masayoshi Sen for 45 minutes at Trump Tower, announced the same over Twitter and also took credit for the same.

"We were talking about it, and then I said I'd like to celebrate his presidential job," Son said in the lobby of Trump Tower, according to USA Today.

The Trump-Son talks were likely to revive the possibility of a merger between Sprint and T-Mobile, according to wireless analyst Chetan Sharma, the USA Today report added. The plan had faced obstacle from the outgoing Obama Administration.

It was though not clear immediately as how much of the investment money was new or how much of it would come from SoftBank itself. Son told Wall Street Journal that the money would originate from a joint fund worth $100 billion announced two months ago by SoftBank and the Saudi Arabian government for investment in the global technology sector.

SoftBank said it would provide at least $25 billion for the fund while the Saudi public investment fund promised to invest up to $45 billion. Both these would take over the next five years. The remaining $30 billion are expected to come from outside investors.

However, not all were convinced that Trump deserved the credit for the investment. For instance, Recon Analytics's Roger Entner said much of the $50 billion may have already on the way to American technology firms, said a Washington Post report.

The president-elect has been active over fulfilling his promise to better the U.S.A.'s employment scenario, particularly in the manufacturing sector. While he took a dig at Apple and other companies over manufacturing products outside the country, recently he convinced Carrier from shifting over 1,000 jobs from Indiana to Mexico. And now, the SoftBank deal suggests that Trump wasn't lying during the campaign.

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