Japanese technology investment giant SoftBank Group Corp. is reportedly in advanced discussions to acquire New York-listed private equity firm DigitalBridge Group Inc., according to a Bloomberg report citing sources familiar with the matter. This potential move signals a major strategic push by SoftBank founder Masayoshi Son to dominate the rapidly expanding artificial intelligence infrastructure landscape.
Deal Details and Market Reaction
The talks involve a potential deal where SoftBank would buy DigitalBridge and subsequently take the company private. Sources indicated to Bloomberg that an agreement could be reached as soon as the coming weeks, though deliberations are ongoing and there is no certainty of a final pact. A separate Reuters report, quoting a knowledgeable person, suggested the deal is likely to be finalized by the end of this year.
The news triggered a massive surge in DigitalBridge's stock price. On Friday, shares of the company skyrocketed by as much as 45%, marking its largest single-day gain ever. The stock closed at $14.12, giving DigitalBridge a market valuation of approximately $2.58 billion. This rally came after the stock had fallen 13% earlier in the year.
Strategic Rationale: Riding the AI Wave
This acquisition talks align perfectly with Masayoshi Son's publicly stated ambition to aggressively pursue opportunities in artificial intelligence. The billionaire has repeatedly emphasized his focus on capturing value from the exploding demand for computing power, which is the foundational bedrock for AI applications worldwide.
DigitalBridge represents a prime target for this strategy. Led by CEO Marc Ganzi, the firm is a heavyweight in digital infrastructure investment, with assets under management valued at $108 billion as of the end of September. Its portfolio includes a roster of leading digital infrastructure operators such as:
- AIMS
- AtlasEdge
- DataBank
- Switch
- Vantage Data Centers
- Yondr Group
Investors are pouring record capital into digital infrastructure, betting that soaring power demand from AI and cloud computing will make data centers a critical and valuable asset class. Consulting firm McKinsey projects that global spending on AI-linked infrastructure could reach a staggering $6.7 trillion by 2030.
SoftBank's Broader AI Infrastructure Ambitions
The potential DigitalBridge acquisition fits into a larger pattern of activity from SoftBank. In January, the company announced a colossal $500 billion project named 'Stargate', in partnership with OpenAI, Oracle Corp., and Abu Dhabi's MGX, aimed at building a network of advanced data centers in the United States.
While Son pledged to deploy $100 billion "immediately" towards such initiatives, the rollout of Stargate has faced delays. These were partly due to disagreements over data center locations and challenges in securing project financing from external investors like insurance and pension funds, amid market volatility and questions about AI hardware valuations.
Acquiring DigitalBridge, with its established portfolio and management expertise, could provide SoftBank with a ready-made platform and accelerated entry into the high-stakes digital real estate sector, bypassing some of the greenfield development hurdles.
As of now, neither SoftBank nor DigitalBridge has issued any official statement regarding the acquisition talks. The financial world will be watching closely to see if this deal materializes into one of the year's most significant moves in the tech investment arena.
