SoftBank Group (9984.T) will acquire digital infrastructure investor DigitalBridge Group (DBRG.N) in a deal valued at $4 billion. The Japanese investment firm aims to strengthen its portfolio in artificial intelligence.
The deal will expand SoftBank’s presence in digital infrastructure. It reflects the conglomerate’s focus on AI-related growth.
Market Reaction
DigitalBridge shares jumped about 9.7% to $15.27 on Monday. Earlier this month, they had already risen 45% after Bloomberg first reported the acquisition talks. The $16 per share offer represents a 15% premium over DigitalBridge’s closing price on Friday. The deal is expected to close in the second half of next year.
Strategic Goals
SoftBank founder Masayoshi Son wants to take advantage of the rising demand for computing power that supports AI applications. Jacob Yahiayan, CEO of DigitalBridge investor Urban Logistic Advisory Services, called the acquisition “a milestone in solving critical infrastructure issues.” He added that SoftBank is still far from controlling 10% of the global hardware- and software-as-a-service market.
DigitalBridge’s Business
DigitalBridge invests in digital infrastructure sectors, including data centers, cell towers, fiber networks, small-cell systems, and edge infrastructure. Its portfolio features companies such as Vantage Data Centers, Zayo, Switch, and AtlasEdge.
Founded in 1991 as real estate-focused Colony Capital, the company shifted to digital infrastructure under CEO Marc Ganzi. It rebranded as DigitalBridge in 2021 after selling most of its legacy property assets. Ganzi will continue leading DigitalBridge as a separately managed platform.
As of September 30, DigitalBridge managed roughly $108 billion in assets. This makes it one of the largest dedicated investors in the digital ecosystem.
Stargate Project
DigitalBridge, along with OpenAI, Oracle, and Abu Dhabi-based tech investor MGX, is investing billions in the Stargate project. The initiative aims to build large-scale computing and infrastructure to support advanced AI development.
In September, OpenAI, Oracle, and SoftBank announced plans to construct five new computing sites in Texas, New Mexico, and Ohio. Once operational, these sites are expected to have a combined power capacity of about seven gigawatts.
