SoftBank Acquires DigitalBridge for $4B: AI Infrastructure Deal Sets Valuation Floor

The SoftBank-DigitalBridge deal represents a calibrated move by SoftBank to secure deep exposure in the critical physical infrastructure layer underpinning the next generation of AI. DigitalBridge’s assets—spanning data centers, towers, fiber, small cells and edge infrastructure—provide substantial scale in both built and under-development capacity. [1][2][14] For SoftBank, this offers immediate capacity to support its AI ambitions including the Stargate initiative and investments made in OpenAI, along with potential leverage over supply-chain, power, and connectivity constraints broadly affecting digital infrastructure. [2][12]

The purchase price of $16/share establishes near-term certainty for investors, but also sets a ceiling on stock upside unless rival bidders emerge or regulatory pressures shift the valuation floor higher. Analysts like JPMorgan see fair acquisition value in a $25–35/share range when projecting into 2026-27 performance, implying that the current deal either locks in a bargain for SoftBank or signals realistic limits given risk and execution concerns. [2][9]

Strategically, the transaction accelerates SoftBank’s shift toward “physical AI” infrastructure—an area where barriers to entry (land, power, permitting, site access) are high. The continuation of DigitalBridge as a separately managed platform preserves its operational independence and domain expertise, which could help mitigate integration risk. [1][12] However, regulatory approval remains a key obstacle; timing in H2 2026 indicates potential for antitrust or foreign investment reviews that could complicate or delay closure. [1][6]

From DigitalBridge’s perspective, the acquisition provides a strong capital backstop, easing pressure for fundraising in a capital-intensive sector, and offers longer planning horizon under SoftBank’s ownership. But shareholders may feel short-changed if valuations increase materially in 2026-27. Analysts’ bullish scenarios assume robust growth in leasing, execution of power and land banks, and favorable regulatory conditions; risks remain in competition, rising construction/energy costs, and macroeconomic headwinds. [2][6]

Key open questions include: Will regulatory bodies in the U.S. or other jurisdictions challenge the deal? Can SoftBank provide the growth CapEx needed to fully develop DigitalBridge’s power banks and land assets? How will this acquisition affect DigitalBridge’s relationships with hyperscalers and cloud providers (including OpenAI)? And, how will energy cost, supply chains, and real estate constraints influence margin pressures going forward?