SoftBank to Acquire DigitalBridge for $4 Billion to Boost AI Infrastructure
SoftBank has reached an agreement to acquire DigitalBridge for approximately $4 billion, or $16 per share, as part of its strategy to strengthen its AI infrastructure assets amid rising demand for computing capacity. Following the announcement, DigitalBridge's stock surged over 50% in premarket trading, reflecting investor optimism. The acquisition will enhance SoftBank's control over critical digital infrastructure, aligning with its involvement in the $500 billion Stargate project with OpenAI and Oracle.
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SoftBank announced an agreement to acquire DigitalBridge for $16 per share, totaling approximately $4 billion including debt. This acquisition indicates SoftBank's aggressive strategy to consolidate AI infrastructure assets amid increasing demand for computing capacity.
DigitalBridge's stock rose over 50% in premarket trading, reflecting investor enthusiasm for the deal. The company's shares jumped from $13.62 to $20.10, with trading volumes reaching ten times the daily average.
Analysts had shown cautious optimism; RBC Capital raised its price target to $23 shortly before the announcement, citing acquisition potential. DigitalBridge manages about $108 billion in digital infrastructure assets despite having a market capitalization of only $2.54 billion.
This acquisition not only provides SoftBank with essential assets for its AI strategy but also control over critical power and cooling infrastructure. The deal aligns with SoftBank's involvement in the $500 billion Stargate project with OpenAI and Oracle, aimed at developing substantial AI computing capacity across the U.S.
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