Despite Khashoggi, Saudi Arabia unlikely to lose U.S. investments
Photo: Bandar Algaloud via Getty Images
Let's call it: Neither SoftBank nor Saudi Arabia will face any significant U.S. investment losses over the murder of journalist Jamal Khashoggi.
Driving the news: Axios has learned from multiple sources that San Francisco-based freight logistics startup Flexport is in talks to raise around $500 million in a SoftBank-led deal. One source puts the pre-money price talk at around $3 billion (another dissents), which could mean the final investment is smaller if either side becomes concerned about CFIUS approvals (which I'd think they would). [Update: A source closer to the situation puts the pre-money closer to $2 billion]
- Last week, Silicon Valley-based robotic delivery vehicle-maker Nuro raised $940 million from SoftBank Vision Fund.
- The Saudi sovereign wealth fund is now so confident that it's planning to open investment offices in U.S. cities like New York and San Francisco.
Between the lines: Just to make it crystal clear, Colony Capital CEO Tom Barrack yesterday joked about the murder from a conference stage in Dubai, arguing that U.S. concerns were a "misunderstanding" about the rule of law in Saudi Arabia. Unclear if Barrack realizes that Khashoggi was killed in Turkey.