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Softbank Foregoes Board Seat, Sensitive Info Access For Clearance On US Tech Deals

Recently, during a press meeting, Softbank made it clear that it is giving up on board seats and won’t access sensitive information. The spokesperson of Softbank further said that the company will undertake a passive role for startups. Softbank’s spokesperson also said that the company will also provide various concessions for getting clearance from the US government.

Due to the investment style, Softbank has charged it with foreign investment reviewing for various competitive risks. In a press meeting, COO of Softbank stated that all the deals which the company has made will be reviewed. Mr. Marcelo Claure further said that the company has followed every other rule made by the US government.

Softbank prefers to acquire stakes of companies which are dealing in sectors like AI, finance, data analysis, and self-driving automobiles. This is the reason why the present government of the US has granted CFIUS powers to probe the dealings of Softbank. If Softbank gives by the seats of the board and stops accessing private data, then CFIUS would not consider the organization as a threat to the nation.

At present, Softbank has made its investment in Uber but again the organization didn’t complete CFIUS review which is very essential for board seats. Even after one year the two directors of Softbank named, Rajeev Misra and Claure hadn’t acquired their board seats. Thus, the rest three directors can’t be hired by Softbank until the two of them acquire their position.

Back in 2018, Claure has increased the lobbying power of Softbank. While speaking to the press, Claure stated that the first motive of Softbank is to make the US government aware of its proceedings. In January, Softbank has also appointed Jeffrey Dressler as a director of national security policy. Previously, Dressler has worked as a security advisor at the American Congress.