- SoftBank agreed to buy DigitalBridge in an all-cash $4B deal at $16 per share, offering shareholders a fixed, defensive exit with a modest arbitrage spread until an expected H2 2026 close.
- DigitalBridge brings roughly $100B+ in managed digital-infrastructure assets across data centers, fiber, towers, and edge, highlighted by Vantage’s 1.4 GW Frontier hyperscale campus in Texas.
- The purchase fits SoftBank’s push to control AI’s physical bottlenecks—compute sites, power, cooling, and connectivity—via large, capital-intensive buildouts.
- Main risks are regulatory approvals (including CFIUS/antitrust), construction and power-supply execution on megaprojects, and potential delays or required divestitures.
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The SoftBank-DigitalBridge deal represents a defensive yet strategic positioning in the rapidly intensifying AI infrastructure race. By paying $16 per share in cash, SoftBank ensures a fixed exit value for DigitalBridge shareholders, decoupling returns from broader market volatility while gaining exposure to a high-growth infrastructure segment. The premium paid suggests SoftBank values immediate access to DigitalBridge’s portfolio more than negotiated discount against fair-value forecasts.
DigitalBridge manages approximately $106-$108 billion in assets as of late 2025, with exposure across data centers, cell towers, fiber networks, and edge infrastructure. One of its marquee projects is the “Frontier” hyperscale campus in Shackelford County, Texas, a $25 billion development with roughly 1.4 gigawatts of power capacity planned, intended to anchor AI growth in one of the fastest growing U.S. data center hubs. Additionally, the acquisition of WOW! (WideOpenWest) for $1.5 billion enhances its fiber and broadband footprint.
Strategically, SoftBank is increasingly betting on the convergence of compute, power, and connectivity as core bottlenecks for AI deployment. The DigitalBridge purchase, together with stakes in infrastructure platforms and AI research entities, signals SoftBank’s effort to control more of the physical underpinnings of the AI stack. The requirement for ~GW-scale power, cooling, land, and regulatory permits makes speed and scale critical advantages. Projects like Vantage’s Frontier are capital-intensive and have long timelines, which raises execution risks—both in construction and in securing environmental, utility, and regulatory approvals.
Regulatory scrutiny will likely be significant. SoftBank’s deal must clear customary approvals, including antitrust and CFIUS, given the critical infrastructure and national security implications of large-scale data center and telecommunications holdings. While SoftBank and DigitalBridge expect closing in H2 2026, delays are possible. Moreover, although DigitalBridge has been able to execute big transactions even during the sale process (e.g., closing the WOW! deal while negotiating with SoftBank), investor outcome depends on the deal closing as structured.
From an investment arbitrage perspective, the spread between current trading price (around $15.30-$15.40) and the agreed $16.00 per share represents a return of ~4 %. Given a closing expected in 6-8 months, annualized return could reach ~6-9 %. It’s a modest return compared to some growth plays, but with greater certainty and reduced sensitivity to macro and market risk. However, opportunity cost versus high bond yields or other defensive assets needs consideration.
Open questions remain: How quickly can SoftBank supply the power infrastructure needed for projects like Frontier amid utility belt constraints and environmental concerns? Will SoftBank invest further capital to scale the fiber and edge portfolio, or focus mainly on hyperscale data centers? Can DigitalBridge maintain operational momentum and cash flow under acquisition pressure until close? And will competitors or regulators force divestitures or limit scale?
Supporting Notes
- SoftBank Group announced on December 29, 2025 a definitive agreement to acquire DigitalBridge in an all-cash transaction valuing the company at approximately $4.0 billion. Under the agreement, SoftBank will pay $16.00 per share in cash.
- The offer represents a 15 % premium over the closing share price on December 26, 2025 and a 50 % premium to the unaffected 52-week average closing price as of December 4, 2025.
- DigitalBridge will continue to operate as a separately managed platform, led by CEO Marc Ganzi, after closing. The transaction is subject to regulatory approvals and is expected to close in the second half of 2026.
- DigitalBridge manages ~$108 billion in assets as of September 30, 2025.
- Vantage Data Centers, a portfolio company, has launched “Frontier,” a $25 billion, 1.4 GW hyperscale campus in Shackelford County, Texas. It will consist of 10 data centers totaling 3.7 million square feet, supporting ultra-high-density workloads with advanced cooling and sustainable design.
- On December 31, 2025, DigitalBridge completed the $1.5 billion take-private acquisition of WOW! in partnership with Crestview Partners; public shareholders received $5.20 per share.
- The acquisition aligns with SoftBank’s goal to build out its AI infrastructure leading to “Artificial Super Intelligence,” part of larger AI and compute-capacity oriented strategy, including capital reallocations (e.g. Nvidia stake sales) and strategic projects.
- Regulatory approvals, particularly antitrust and CFIUS, are among the customary conditions cited in the deal announcement.