SoftBank’s DigitalBridge Deal: Strategy, Risks & What’s Next in AI Infrastructure

Deal Structure and Valuation
The deal has an enterprise value of approximately $4 billion and involves SoftBank acquiring all outstanding common stock of DigitalBridge for $16 per share in cash. This reflects a ~15 % premium over DigitalBridge’s December 26, 2025 closing share price and roughly a 50 % premium over its 52-week average as of early December. [4][5] Shareholder and board approvals have been secured, including from a special committee composed of independent directors. [2][4] The transaction is expected to close in H2 2026, and will remain subject to regulatory approvals and other customary conditions. [2]

Strategic Drivers
The acquisition extends SoftBank’s strategy of owning the physical infrastructure that underpins large-scale AI deployment. DigitalBridge brings expertise and assets in data centers, fiber, edge, and cellular infrastructure—verticals that are increasingly mission-critical for cloud and AI workloads. [3][11] For SoftBank, this helps close the gap between its ambitions in ASI and its existing compute, connectivity, and deployment strengths. The fact that SoftBank has divested a $5.8 billion Nvidia equity stake indicates a reshuffling of capital into areas more tightly linked to infrastructure rather than chip-based exposure alone. [1][11]

Risks, Risks & Integration Concerns
While the acquisition adds scale, several risks remain. Regulatory approval is not assured—data center, telecoms, and cross-border infrastructure deals are increasingly scrutinized for national security and competition concerns. Regulatory conditions, approval timelines, and potential opposition could delay closing.[4] Also, valuation pressures: DigitalBridge’s share price had already jumped on acquisition rumors, reducing the upside for SoftBank. Paying a 50 % 52-week average premium implies SoftBank is paying for expectations, which may stretch margins if growth or utilization lags. Integration risk is mitigated by running DigitalBridge as a separately managed platform under existing leadership; however, aligning incentives and ensuring capital deployment fits SoftBank’s time horizons may still be challenging.[2]

Financial & Market Implications
SoftBank’s balance sheet will absorb this acquisition. Though $4 billion is modest relative to its overall size, it compounds burden from other deployments in ASI projects like Project Stargate, its OpenAI investments, and prior M&A (e.g. Ampere, ABB Robotics). [7][11] How this deal is financed—through divestitures, debt, or equity—will influence SoftBank’s leverage, cost of capital, and stock performance. For DigitalBridge shareholders, the 15 % premium is in line with current deal crossings, but downside protection may be modest post-deal if AI infrastructure growth slows. Market reaction has been positive so far. [6]

Strategic Implications & Competitive Landscape
By acquiring DigitalBridge, SoftBank is doubling down on owning the stack—from compute to connectivity to power. This may intensify competition with global cloud providers (e.g. AWS, Microsoft, Google), hyperscalers, telecom infrastructure companies, and infrastructure investment funds. The acquisition may also signal to peers and investors that infrastructure-led AI plays are increasingly central, shifting capital flows away from chip design or algorithmic R&D. For governments, this underscores the strategic importance of infrastructure in AI policy; jurisdictions may respond with increased regulation or incentives.

Open Questions
– What financing mix will SoftBank use for the acquisition (new debt vs asset sales)?
– How will SoftBank ensure DigitalBridge’s infrastructure is deployed in line with its ASI vision—execution, timeline, and utilization?
– Can SoftBank maintain DigitalBridge’s growth and innovation culture while integrating into a larger global platform?
– What regulatory conditions—domestic and international—will apply, especially related to telecom/fiber networks, cross-border data, and national security?
– Lastly, how will demand projections for AI infrastructure evolve and will SoftBank be able to avoid overcapacity risk, power constraints, and rising energy costs?