SoftBank in Talks to Buy Data-Center Investor DigitalBridge

Core Viewpoint - SoftBank Group Corp. is negotiating to acquire DigitalBridge Group Inc., aiming to leverage the growing demand for digital infrastructure driven by AI advancements [1][3]. Group 1: Acquisition Details - SoftBank is in talks to take DigitalBridge private, with discussions ongoing and no guarantee of a finalized deal [1][3]. - DigitalBridge's shares experienced a significant increase of 45%, closing at $14.12, resulting in a market value of $2.58 billion [2]. Group 2: DigitalBridge Overview - DigitalBridge, led by CEO Marc Ganzi, manages approximately $108 billion in assets, with a portfolio that includes various digital infrastructure operators [4]. - The company has been underperforming, with shares down 13% prior to the recent surge [2]. Group 3: Market Context and Analyst Insights - The acquisition aligns with SoftBank's strategy to capitalize on the increasing demand for computing capacity essential for AI applications [3]. - Analyst Ric Prentiss from Raymond James noted that a larger asset manager would benefit from acquiring DigitalBridge, suggesting that the company would consider selling at a significantly higher price [5]. Group 4: SoftBank's Previous Ventures - SoftBank has a history of engaging in asset management acquisitions, including the purchase of Fortress Investment Group for over $3 billion in 2017 [6]. - The company announced a $500 billion project called Stargate to build data centers in the US, although progress has been slower than anticipated due to location disagreements [7].