Japan Tech Group SoftBank's $250M Investment Raises WME-IMG's Value To $5.5B

Japanese tech group SoftBank has invested $250M in WME-IMG in a deal that "values the entertainment, sports and fashion company" at $5.5B, according to Garrahan & Massoudi of the FINANCIAL TIMES. The deal was announced Wednesday, and represents a "steep increase in the value of WME-IMG over the past two years." The companies "declined to comment." Silver Lake is the majority shareholder in WME-IMG. Stakes held by the firm and other WME-IMG investors "will be diluted" following the SoftBank investment. A source said that the SoftBank funds will be used for potential investments, joint ventures and acquisitions "as WME-IMG looks to increase its global footprint." For SoftBank, the WME-IMG investment "comes as it plans to separate its Japanese business from more volatile but potentially faster growth global operations" that include stakes in Chinese ecommerce group Alibaba and Sprint (FT, 3/23).