Softbank's next move: Day trading
Softbank, LBO firm put $40 million into Tradescape.com
By Emily Church, CBS MarketWatch
Last Update: 11:06 AM ET Jun 30, 1999 Internet Stocks
NEW YORK (CBS.MW) -- Softbank Partners and a Boston-based buyout firm are investing $40 million in a New York day trading firm, Tradescape.com, in exchange for minority equity stakes.
The investment is expected to be announced on Thursday, a Tradescape.com executive said.
Moreover, Tradescape.com is making an acquisition of Texas-based Momentum Securities that will make Tradescape the largest day trading firm in the United States. Combined, the firms are seeing 90,000 trades per day from hundreds of day traders. Neither firm is publicly traded.
The investments by Japanese Internet investor Softbank, which is publicly traded in Tokyo, and J.W. Childs, a leveraged buyout firm, "validate what we have been doing after months of due diligence," Tradescape.com CEO Omar Amanat told CBS.MarketWatch.com.
"This investment fits in very well and has synergy with other (Softbank) companies," Amanat said.
Softbank invests in online broker E-Trade (EGRP: news, msgs) among other U.S. and Japanese companies. See related story. Executives from J.W. Childs were not immediately available for comment.
Emily Church is the New York bureau chief for CBS MarketWatch.
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