SoftBank Halts $50B Acquisition Talks for Switch, Eyes Partial Investment
SoftBank Group Corp. has halted its $50 billion acquisition talks for US data center operator Switch Inc., shifting its focus to a potential partial investment. This decision follows the collapse of the full deal, as SoftBank recently acquired DigitalBridge Group Inc., which holds a majority stake in Switch, and has made significant investments in AI. With Switch preparing for an IPO valued at around $60 billion, the deal may face scrutiny from US regulatory bodies.
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SoftBank Group Corp. has halted discussions for a full acquisition of US data center operator Switch Inc., previously aimed at supporting the $500 billion Stargate AI project. Founder Masayoshi Son shifted focus to a potential partial investment after a proposed $50 billion deal collapsed.
SoftBank recently acquired DigitalBridge Group Inc. for $3 billion, which holds a majority stake in Switch. The company has also invested heavily in AI, including an 11% stake in OpenAI worth $22.5 billion and the $6.5 billion purchase of Ampere Computing.
S&P Global Ratings warned of credit pressures due to these investments. While Switch is preparing for an IPO, valued at approximately $60 billion, the potential deal may face scrutiny from US regulatory bodies.
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