SoftBank To Acquire DigitalBridge for $4B, Gaining $108B in AI-Ready Infrastructure

This acquisition is a strategically significant move by SoftBank to more deeply embed itself in the physical infrastructure required for large-scale AI deployment. By purchasing DigitalBridge, SoftBank gains direct ownership of a portfolio that spans data centers, fiber networks, towers, and edge infrastructure—assets that are increasingly constrained factors as demand for AI compute and connectivity grows.

The price of US$16.00 per share in cash reflects a moderate premium above recent trading prices and a substantial premium (≈50%) over DigitalBridge’s 52-week average, indicating a compelling valuation for DigitalBridge shareholders. However, even with the premium, the overall enterprise value of US$4 billion suggests that DigitalBridge may have underperformed market expectations despite its large asset base (US$108 billion AUM), or that SoftBank sees distinct undervaluation or upside in applying its capital and strategic resources.

Operationally, keeping DigitalBridge as a separately managed platform under the leadership of CEO Marc Ganzi preserves continuity, investor relationships, and DigitalBridge’s ability to raise and deploy third-party capital. For SoftBank, this structure provides a hybrid model: direct control over the infrastructure and financial return potential from both asset ownership and asset-management fee streams.

Financially, the timing aligns with SoftBank’s broader AI investment pivot. The group has recently sold its stake in Nvidia (~US$5.8 billion) to help make room for further AI-related investment, including in OpenAI and its “Stargate” infrastructure collaboration with Oracle. The deal enhances SoftBank’s exposure to more stable infrastructure assets—which are likely to carry less volatility than pure software or model bets—but it nonetheless introduces execution risk, regulatory risk, and the challenge of integrating/deploying large physical infrastructure projects globally.

Potential risks and open questions include whether the regulatory environment (especially in the US and EU) will approve the deal without conditions, whether SoftBank can effectively scale DigitalBridge’s operations without compromising on returns, how the capital expenditure requirements (especially for power, cooling, site acquisition) will be met, and whether rising interest rates or inflation pressures will increase costs. Also, market saturation or competition in digital infrastructure (hyperscalers, cloud providers, other infrastructure managers) could limit pricing leverage or margins in some geographies. Furthermore, how SoftBank finances the deal—whether using its balance sheet, debt, or capital raised via DigitalBridge—will affect its financial flexibility and risk profile.

Strategic implications are significant: SoftBank strengthens its hand in the core “physical layer” of AI deployment, not just in model training or algorithm development. It could position SoftBank to supply infrastructure to hyperscalers, cloud providers, AI labs, telecoms, governments, or to integrate infrastructure more tightly with its other portfolio companies. If successful, it could serve both as a multiplier of returns and as a defensive hedge against infrastructure bottlenecks. But execution will be key—on cost control, regulatory clearance, energy sourcing, supply chain, and site deployment.