Trump Embraces $50 Billion Investment, but Is It Worth the Saudi Ties?


As camera lights flashed, President-elect Donald J. Trump strode across the lobby of Trump Tower with Masayoshi Son, the colorful Japanese entrepreneur, in December.

“This is Masa of SoftBank from Japan,” Mr. Trump said before boasting that Mr. Son’s SoftBank — which is in the process of amassing a giant $100 billion fund — had pledged to invest $50 billion in the United States and would create 50,000 jobs here.

“He’s one of the great men of industry, so I just want to thank you very much,” he told Mr. Son, who was an early investor in Yahoo and Alibaba. Just last month he bought the Wall Street firm Fortress Investment Group for $3 billion.

The photo op was intended to be part of Mr. Trump’s “America First” campaign.

Yet unmentioned that day — and largely unremarked upon — is that Mr. Son’s $100 billion SoftBank Vision Fund could reasonably be described as a front for Saudi Arabia and perhaps other countries in the Middle East.

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Saudi Arabia is the majority investor in the fund, with some $45 billion pledged. A state-owned investment company from Abu Dhabi, Mubadala Development, is in negotiations to invest $15 billion as well. Qatar is also in talks to invest in the fund.

This is not a secret to anyone who has been paying even a modicum of attention to the news that has dribbled out about the fund.

While Mr. Son has pledged to provide a quarter of the fund himself, hardly any of the money comes from investors in the United States — with the exception of several nominal $1 billion investments, including from Apple, Qualcomm and Larry Ellison of Oracle.

Mr. Trump’s embrace of Mr. Son, and therefore Saudi Arabia, to take over some of Silicon Valley’s most promising companies and intellectual property could be seen as being at odds with his nationalistic talk.

“Would you take money from the Saudis?” Sean Hannity of Fox News asked him last year.

“No,” Mr. Trump replied, without missing a beat.

On the campaign trail, Mr. Trump criticized Hillary Clinton’s ties to Riyadh. “Crooked Hillary says we must call on Saudi Arabia and other countries to stop funding hate,” Mr. Trump wrote on Facebook. “I am calling on her to immediately return the $25 million plus she got from them for the Clinton Foundation!”

Those references were made in the context of politics, but should they also extend to business?

This column isn’t taking a position on the politics or the morality of taking money from Saudi Arabia. But it is a conversation that is worth having.

Just as the United States has tried to become energy independent from the Middle East for economic and political reasons, we may be on the verge of taking the opposite tack when it comes to our innovative start-ups.

While Mr. Trump wants to stimulate foreign investment in the United States, he has also talked tough about the Middle East and terrorism. Fifteen of the 19 hijackers involved in the Sept. 11, 2001, attacks were citizens of Saudi Arabia.

In true Trumpian style, he has made somewhat contradictory statements about Saudi Arabia: “Saudi Arabia — and I get along great with all of them. They buy apartments from me,” Mr. Trump said at a campaign stop. “They spend $40 million, $50 million. Am I supposed to dislike them? I like them very much.”

Saudi Arabia’s laws are antithetical to many Americans and even to Mr. Trump’s most conservative views: Women are not allowed to drive, homosexuality is punishable by stoning to death, and freedom of religion is not permitted.

Which makes it all the more surprising that when Prince Mohammed bin Salman, Saudi Arabia’s deputy crown prince, came to California last year, a who’s who of technology and venture capital chief executives lined up to meet with him. The tour included meetings with Tim Cook of Apple, Mark Zuckerberg of Facebook, Satya Nadella of Microsoft, and venture capital investors like Marc Andreessen, Reid Hoffman and Peter Thiel.

Or maybe it is not surprising if you take the view that an influx of cash from Saudi Arabia will most likely lift the valuations of all Silicon Valley companies. Cash is cash.

Last year, however, when Saudi Arabia invested $3.5 billion in Uber, it kicked up some dust: Fortune magazine said the deal “poses a sort of moral dilemma for Silicon Valley; forcing businesses to weigh investors’ record and financial firepower against their principles.”

Saudi Arabia has been transparent about its plans to diversify its economy away from its dependence on oil. Part of its plan is to buy assets in other countries, like technology companies in the United States. Prince Mohammed is also in favor of loosening some of the social strictures that trouble women and others. And some foreign-policy experts suggest that closer ties like these investments may help prompt quicker reform in Saudi Arabia.

In fairness to Mr. Trump, if he does want to bring huge investment sums to the United States, it is hard do that without involving some countries with which we have had complicated relationships. Some of the largest money is tied up in vast sovereign wealth funds.

Not all of the $50 billion investment that Mr. Son pledged to make here is likely to come from SoftBank’s Vision Fund, the one backed by Saudi Arabia. Some of it may come directly from SoftBank, which owns Sprint and is hoping to merge it with T-Mobile.

All that said, can you imagine if Mr. Trump stood in the lobby of Trump Tower with Prince Mohammed talking about a $50 billion investment in the United States from Saudi Arabia?

It’s hard to see — but then again, we live in strange times.


https://www.nytimes.com/2017/03/06/business/dealbook/07sorkin-softbank-trump-saudi-arabia.html?_r=0

Obama sold $115 billion worth of military equipment to the Saudis, not one word of protest from the retarded leftists on that.

Baronvonrort wrote on Mar 7^th, 2017 at 1:46pm:

Obama sold $115 billion worth of military equipment to the Saudis, not one word of protest from the retarded leftists on that.

Obama didn't propose travel bans on Muslim majority country's citizens under the guise of preventing terrorism.

Looks like they shifted from "muh russia" to "muh saudi arabia" after they got caught sticking their necks out too far.

Ive got no dog in this fight as yet - what would the progressives raising the issue like to see happen?

mothra wrote on Mar 7^th, 2017 at 1:49pm:

Baronvonrort wrote on Mar 7th, 2017 at 1:46pm: Obama sold $115 billion worth of military equipment to the Saudis, not one word of protest from the retarded leftists on that. Obama didn't propose travel bans on Muslim majority country's citizens under the guise of preventing terrorism.

The Terrorist Travel Prevention Act of 2015 was a travel ban on muslims by Obama.

Of course the retarded morally bankrupt leftards were silent when Obama restricted muslims from entering the USA.

The leftists are a bunch of morally bankrupt retarded hypocrites.  ::) ::)

... wrote on Mar 7^th, 2017 at 1:49pm:

Looks like they shifted from "muh russia" to "muh saudi arabia" after they got caught sticking their necks out too far. Ive got no dog in this fight as yet - what would the progressives raising the issue like to see happen?

Oh Russia is still VERY MUCH in the mix as more and more investigations get started. Once a special prosecutor is announced, the heads will start rolling and end with Trumps impeachment.

Your fantasies are very interesting longy, but this is not the time or the place. 

I'm trying to open a constructive dialogue here.  If you don't have anything to contribute, what are you doing here?

... wrote on Mar 7^th, 2017 at 2:36pm:

Your fantasies are very interesting longy, but this is not the time or the place.  I'm trying to open a constructive dialogue here.  If you don't have anything to contribute, what are you doing here?

Constructive dialogue?  All that tells me is that you have finally tweaked to the fact that Trump is a nutter and you are trying to find a way to backpedal from the insanity you have posted for the last year. The reality is that Trump is headed towards impeachment. He shows no evidence of having a clue what he is doing or even of basic reality. He is a pathological liar who has surrounded himself with other liars while the rest of the WH is leaking madly trying to force Trump to do the right thing - which he has no idea of.

A constructive dialogue is to discuss what happens when Pence is President and Trump is either in jail or in a straitjacket (or both)

Yes, constructive dialogue.

You've made your stance on Trump quite clear already, you don't need to keep going on about it.

... wrote on Mar 7^th, 2017 at 2:56pm:

Yes, constructive dialogue. You've made your stance on Trump quite clear already, you don't need to keep going on about it.

So have you, but you seem to be wavering. That is of course, a good thing, because by now, only fools and idiots stand behind Trump and his growing narcisistic insanity. Almost every day brings yet another unprecedented, truly crazy trump act and behind all that we have the monumental spectre of the possibility that Trump et al colluded in a treasonous act with the Russians to steal the election. UNproven of course, but the flood of lies, falsehoods and attempts to impede justice, makes one wonder if there is indeed a new Benedict Arnold and he sits in the Oval Office.

Baronvonrort wrote on Mar 7^th, 2017 at 1:46pm:

Obama sold $115 billion worth of military equipment to the Saudis, not one word of protest from the retarded leftists on that.

That's right, Baron. The decent rightists were trying to get the vile Obama to invade Syria. Would he listen?

Of course not.

No, this pathetic black Muslim president decided he'd arm Sunni Arabs to do it instead.

Typical.

Baronvonrort wrote on Mar 7^th, 2017 at 1:59pm:

mothra wrote on Mar 7th, 2017 at 1:49pm: Baronvonrort wrote on Mar 7th, 2017 at 1:46pm: Obama sold $115 billion worth of military equipment to the Saudis, not one word of protest from the retarded leftists on that. Obama didn't propose travel bans on Muslim majority country's citizens under the guise of preventing terrorism. The Terrorist Travel Prevention Act of 2015 was a travel ban on muslims by Obama.

No, it wasn't.

Why resort to lying?

greggerypeccary wrote on Mar 7^th, 2017 at 3:37pm:

Baronvonrort wrote on Mar 7th, 2017 at 1:59pm: mothra wrote on Mar 7th, 2017 at 1:49pm: Baronvonrort wrote on Mar 7th, 2017 at 1:46pm: Obama sold $115 billion worth of military equipment to the Saudis, not one word of protest from the retarded leftists on that. Obama didn't propose travel bans on Muslim majority country's citizens under the guise of preventing terrorism. The Terrorist Travel Prevention Act of 2015 was a travel ban on muslims by Obama. No, it wasn't. Why resort to lying?

Little pecca made a bet with bias that he would leave this forum if Trump won the election, when is little pecca going to be a man and honour his bet with bias and piss off from this forum like he said he would.

Little pecca lied when he said he would leave this forum if Trump won the election

Baronvonrort wrote on Mar 7^th, 2017 at 3:55pm:

greggerypeccary wrote on Mar 7th, 2017 at 3:37pm: Baronvonrort wrote on Mar 7th, 2017 at 1:59pm: mothra wrote on Mar 7th, 2017 at 1:49pm: Baronvonrort wrote on Mar 7th, 2017 at 1:46pm: Obama sold $115 billion worth of military equipment to the Saudis, not one word of protest from the retarded leftists on that. Obama didn't propose travel bans on Muslim majority country's citizens under the guise of preventing terrorism. The Terrorist Travel Prevention Act of 2015 was a travel ban on muslims by Obama. No, it wasn't. Why resort to lying? Little pecca made a bet with bias that he would leave this forum if Trump won the election, when is little pecca going to be a man and honour his bet with bias and piss off from this forum like he said he would. Little pecca lied when he said he would leave this forum if Trump won the election

Sorry, Baron, are you saying you're not telling fibs about Obama banning Muslims?

Please explain.

I cannot believe Trump does not appreciate the basic facts concerning Islamic terrorism. He has to know that a temporary ban on immigration from a few Muzlim countries will not have any affect on the number of atrocities committed in the name of Allah. He has to know that there are people of many nationalities including Western countries who can enter the US and commit such ugly acts to avenge what they see as a crusade against Islam. This looks like window dressing to me; a policy to look like he is doing something about the problem. George Bush did the same thing with the invasion of Iraq. What Trump is demonstrating is that while he would like to do something about Islamic terrorism, he has a price at which he can be bought off.

issuevoter wrote on Mar 7^th, 2017 at 4:16pm:

I cannot believe Trump does not appreciate the basic facts concerning Islamic terrorism. He has to know that a temporary ban on immigration from a few Muzlim countries will not have any affect on the number of atrocities committed in the name of Allah. He has to know that there are people of many nationalities including Western countries who can enter the US and commit such ugly acts to avenge what they see as a crusade against Islam. This looks like window dressing to me; a policy to look like he is doing something about the problem.

But of course. Mr Trump's just having a bit of a chuckle.

His order won't get through the courts either. He just wants to be able to say he tried.

Thanks, Mr Trump. Good on you for giving it a go.

We will try to make Amerika great again, no?

Big Donger wrote on Mar 7^th, 2017 at 4:20pm:

issuevoter wrote on Mar 7th, 2017 at 4:16pm: I cannot believe Trump does not appreciate the basic facts concerning Islamic terrorism. He has to know that a temporary ban on immigration from a few Muzlim countries will not have any affect on the number of atrocities committed in the name of Allah. He has to know that there are people of many nationalities including Western countries who can enter the US and commit such ugly acts to avenge what they see as a crusade against Islam. This looks like window dressing to me; a policy to look like he is doing something about the problem. But of course. Mr Trump's just having a bit of a chuckle. His order won't get through the courts either. He just wants to be able to say he tried. Thanks, Mr Trump. Good on you for giving it a go. We will try to make Amerika great again, no?

No. Not if he allows the mega-rich Muzlims (who cover for Wahabis) to buy him off.

issuevoter wrote on Mar 7^th, 2017 at 4:47pm:

Big Donger wrote on Mar 7th, 2017 at 4:20pm: issuevoter wrote on Mar 7th, 2017 at 4:16pm: I cannot believe Trump does not appreciate the basic facts concerning Islamic terrorism. He has to know that a temporary ban on immigration from a few Muzlim countries will not have any affect on the number of atrocities committed in the name of Allah. He has to know that there are people of many nationalities including Western countries who can enter the US and commit such ugly acts to avenge what they see as a crusade against Islam. This looks like window dressing to me; a policy to look like he is doing something about the problem. But of course. Mr Trump's just having a bit of a chuckle. His order won't get through the courts either. He just wants to be able to say he tried. Thanks, Mr Trump. Good on you for giving it a go. We will try to make Amerika great again, no? No. Not if he allows the mega-rich Muzlims (who cover for Wahabis) to buy him off.

Thank heavens the Saudis are back in charge.