SoftBank To Buy Data Center Investor DigitalBridge For $4B
SoftBank said Monday it has agreed to acquire DigitalBridge in an all-cash transaction valued at about $4B.
The acquisition underscores SoftBank’s push into infrastructure that supports artificial intelligence, as investors increasingly back data centers and other long-duration assets.
DigitalBridge shares rose about 10% in early trading following the announcement, according to CNBC.
“DigitalBridge is a leader in digital infrastructure, and this acquisition will strengthen the foundation for next-generation AI data centers, advance our vision to become a leading ASI platform provider, and help unlock breakthroughs that move humanity forward,” SoftBank CEO and Chairman Masayoshi Son said in a statement.
SoftBank is laser-focused on data center investments in the U.S. It has partnered with OpenAI and Oracle on a $500B development partnership called Stargate. Son is reportedly nearing a deal with the White House to build Trump-branded industrial parks on federal land to manufacture artificial intelligence hardware.
Earlier this month, Bloomberg reported that SoftBank was evaluating DigitalBridge as a potential acquisition target, though pricing was not disclosed and other bidders were also said to be circling. At the time, DigitalBridge’s share price implied a market valuation of less than $3B.
The company manages roughly $108B in assets, according to DigitalBridge. The deal takes the firm private as AI-driven data center projects demand larger capital commitments and longer development timelines.
The purchase comes as some analysts, economists and industry-watchers have questioned the hype surrounding AI and invoked the specter of an artificial intelligence bubble, which could have significant impacts on the real estate that supports the sector. But not everyone is convinced AI is slated for a near-term bust.
Wall Street fears haven’t yet slowed Silicon Valley, and Big Tech’s spending on artificial intelligence has soared. Tech behemoths, including Amazon, Google, Meta and Microsoft spent almost $400B combined on data centers and associated infrastructure this year. Just last week, Google parent Alphabet agreed to acquire data center developer Intersect for $4.75B.
“The buildout of AI infrastructure represents one of the most significant investment opportunities of our generation,” DigitalBridge CEO Marc Ganzi said in a statement about the SoftBank acquisition.
SoftBank's deal with DigitalBridge, which has been unanimously approved by a special committee of the latter's board of directors, has SoftBank acquiring all the outstanding common stock of DigitalBridge for $16 per share in cash, CNBC reported.
