Tech reckons with Saudi cash after journalist’s brutal murder

Last week Saudi Arabian officials were suspected of murdering American journalist Jamal Khashoggi by harassing and harassing him at the Saudi consulate in Istanbul. Authorities across Washington are discussing sanctions or other ways of punishing them for murder. But the reaction could cause unexpected problems for US technology companies that have been investing billions of dollars in Saudi Arabia in recent years.

Prince Mohammed bin Salman poured money directly or indirectly into an American technology company. We will diversify the country's oil-dependent economy. Said Vision 2030, Saudi Arabia hopes to invest at least $ 2 trillion in energy and technology in the next 20 years. This move has made Saudi Arabia the largest investor in venture capital investments in the United States, and it can have an uncomfortable impact on the industry as a whole.

There are many legal mechanisms to prevent foreign investment in US companies. Foreign investment by the US Treasury Department on foreign sanctions (CFIUS). So far, these efforts have been more commonly used for Russia and Iran, but if Saudi Arabia is the target, it can be a big headache for companies with Saudi cash. Saudi investment is expected to be abruptly halted, at least to prevent a significant part of the recent start-up boom.

The nation's sovereign public investment fund was one of the largest means of direct investment in US technology. Companies such as Uber also invested $ 3.5 billion in joint investors in 2016. The Crown invested $ 45 billion in the Softbank subsidiary Vision Fund to invest in several technology companies. The Vision Fund has invested heavily in Slack, DoorDash and Nvidia.

Nvidia refused to comment, saying "We did not receive funds from the SoftBank Vision Fund," according to email with The Verge and DoorDash responded to the request for comments. SoftBank bought NVIDIA shares in the market. It was the way all investors could do and the proceeds were received by previous shareholders. What we have understood is that the stock has been transferred to the Vision Fund. "Although the fund was not purchased directly from the Vision Fund, the fund currently holds nearly 5% of the company's stake.

WeWork, together with Adam Neumann, co-founder and CEO of last year's press release, Recognizing the investment, "The support of SoftBank and the Vision Fund will create more opportunities as they begin to humanize the way people work and live.

The money that Saudi Arabia will spend on American startups has proven so far untenable, Silicon Valley is known for its consumer-oriented idealistic mission statement, Last year, Uber insisted that the Saudi government backed its position on the controversial issue of sex and sexual rights with the Saudi government,

During the past week, the White House has rejected any real action until it reaches the bottom of Khashoggi's disappearance, but this afternoon, Treasury Secretary Steve Mnuchin said next week Among the world's largest financial summit meetings,

According to Defense News Senator Lindsey Graham (R-SC) has pledged to stop selling weapons to the country as long as the Crown remains in power. "I can not do business with Saudi Arabia again until the negotiations with Saudi Arabia are finished," he said. "I will not go back to Saudi Arabia as long as this person is responsible." The Trump administration has suspended military aid

New political tensions have already caused problems Investments planned in the US The Endeavor Talent Management Agency has invested $ 400 million in Saudi Arabia's sovereign wealth funds earlier this week to stop investing. Virgin Galactic, a space tourism venture, also suspended partnerships as a result of tensions. They say the second vision funding plan between SoftBank and the Public Investment Fund could be indefinitely suspended.

Please Note: This content is provided and hosted by a 3rd party server. Sometimes these servers may include advertisements. igetintopc.com does not host or upload this material and is not responsible for the content.