SoftBank Halts Acquisition Talks with U.S. Data Center Operator Switch
SoftBank Group has halted acquisition talks for U.S. data center operator Switch, which affects founder Masayoshi Son's Stargate AI infrastructure plans. While a full buyout is off the table, discussions for a partial investment or partnership are ongoing as Switch prepares for a potential $60 billion IPO. Following the news, SoftBank's shares fell 5% in Tokyo amid concerns over its high leverage and liquidity challenges.
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SoftBank Group has paused discussions to acquire U.S. data center operator Switch, impacting founder Masayoshi Son's Stargate AI infrastructure plans. Previously, SoftBank sought a $50 billion acquisition.
Though a full buyout is off the table, talks for a partial investment or partnership continue. Switch is preparing for an IPO with a potential $60 billion valuation. SoftBank's shares fell 5% in Tokyo following the news. The company has a 3-year revenue growth rate of 11%, a net margin of 40.9%, and a debt-to-equity ratio of 1.41, indicating high leverage and potential liquidity challenges.
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