SoftBank to Buy DigitalBridge for $4B in Push to Own AI Infrastructure

SoftBank’s acquisition of DigitalBridge is both strategic and forward-leaning, representing a classic “picks and shovels” infrastructure play in the AI build-out. With DigitalBridge’s assets spanning everything from data centers to fiber, towers, small cells and edge infrastructure, SoftBank is acquiring not just assets but key levers required for next-generation AI deployment. [3] [5] The relatively modest purchase price—$4.0 billion enterprise value—suggests DigitalBridge’s market capitalization or equity value was significantly depressed relative to the value of its infrastructure AUM, offering SoftBank an opportunity to buy critical infrastructure capability on relatively favourable terms. [2] [5]

The structure of the deal—per-share cash offer of $16, representing a ~15% premium over the most recent close and ~50% over an earlier 52-week average—indicates SoftBank is willing to pay enough to secure control while avoiding overpaying in a frothy environment. [5] [2] The unanimous recommendation by a special committee of independent directors and board approval adds legitimacy to valuation and process. [5]

From SoftBank’s perspective, this strengthens its ability to move downstream in the AI stack by owning the physical infrastructure—not just investing in AI models or chips, but also in the network, power, edge, and facilities that will be in high demand as AI workloads scale. [2] [5] The deal also complements other SoftBank moves: disposing of its Nvidia stake (~$5.8B) to reallocate capital, committing ~$30B to OpenAI, and participating in Stargate, a ~$500B US-AI infrastructure initiative. [3] [2] By internalizing DigitalBridge’s fundraising, fee generation, and project origination pipelines, SoftBank could also smooth some volatility in its financial profile.

Risks and open questions remain significant. Regulatory approval may pose challenges, particularly given national security sensitivities around AI infrastructure, data flows, edge networks, and cross-border connectivity. [5] Integration risk is lower given DigitalBridge stays separately managed, but cultural, financial, and operational alignment will still matter. With public markets valuing DBRG’s shares lower than implied underlying AUM and earnings potential (as suggested by the 50% premium to a prior-period average), the deal rests on SoftBank’s ability to monetize or leverage that underlying value. Finally, the timing—closing in H2 2026—leaves exposure to macro risk (interest rates, capital availability, regulation) during a period of intense competition in AI infrastructure build-outs from other global players.

Strategic implications for competitors, investors, and the broader sector include potential acceleration of infrastructure consolidation. Firms managing digital infrastructure may face increasing pressure to align with large global platforms capable of the capital intensity required for hyperscale and edge expansion. For investors, this deal emphasizes that the value in AI and cloud is increasingly shifting toward the physical layer—networks, connectivity, power—even as model development attracts headlines.