Andy Rubin, an American computer programmer who is the CEO and founder of tech startup incubator Playground Global, already knows what it’s like to get on the bad side of Apple Inc. The Cupertino-based smartphone maker has left no stone unturned when it comes to battling with Android developer Andy Rubin and his company and now there are several reports about a certain Softbank deal.
Was Apple responsible for Softbank not investing in Essential?
Andy Rubin – a partner at venture capital firm Redpoint Venture – and his mobile company have been locked in an unending battle with the Cupertino-based iPhone maker for the last decade. His new company has not much to do with mobile operating systems but it has already lost out because of the tech giant. Isn’t that strange? For Andy Rubin it isn’t as he must be quite used to Apple’s vicious throws by now.
Rubin confirmed during a talk recently that his new company ‘Essential’ has lost out on a $100 million investment because of a conflict with the Silicon Valley giant. A $100 million investment is a big deal for a company that is technically a startup. The fact that the startup is being run by Android developer Rubin does not matter here because a company runs on the investments of other firms and institutions.
According to a March report by the news outlet ‘The Wall Street Journal’, Rubin basically confirmed that Essential “was close to a deal with SoftBank’s Vision Fund for a $100 million investment, which would have valued Rubin’s startup at $1 billion.” According to Bloomberg, the paperwork was almost in the final stages when Softbank decided to pass. Rubin believes it was because of Softbank’s close ties to the tech giant.
Apple didn’t object to Softbank’s investment
The Vision Fund of Softbank is a $100 billion fund that invests in new technology and the Cupertino-based iPhone maker has put $1 billion into the fund previously. The tech giant would have had a small stake in a rival smartphone making company if the deal between Softbank and Essential had gone through.
The tech company did not object to the investment but Softbank did not want to take any chances of disappointing or upsetting the Silicon Valley giant. The deal mattered more for the platform that Softbank could have provided and less for the money. The latest and much awaited smartphone of Essential is releasing across the world with zero support for major carriers. Softbank, which is the second-largest carrier in Japan, owns Sprint as well, hence, a deal with the Japanese carrier could have helped Essential in getting inside the smartphone market.