SoftBank to Buy DigitalBridge for $4 Billion, Expanding Push Into AI Infrastructure

TOKYO — SoftBank Group Corp. is deepening its bet on the physical backbone of artificial intelligence, agreeing to buy U.S.-based DigitalBridge Group Inc. in an all-cash deal that values the digital infrastructure investor at about $4 billion.

Deal terms and timeline

Under a definitive agreement announced Dec. 29, SoftBank will acquire all outstanding shares of DigitalBridge for $16 in cash per share. The companies said that represents a roughly 15% premium to DigitalBridge’s closing stock price on Dec. 26 and about 50% above its average closing price over the prior 52 weeks before takeover talks were reported in early December.

The transaction, unanimously approved by both boards, would take DigitalBridge private and fold one of the world’s most aggressive data center and network investors into SoftBank’s push to build out what Chairman and Chief Executive Masayoshi Son has described as the infrastructure for “Artificial Super Intelligence.”

DigitalBridge will continue to operate as a separately managed platform headquartered in Boca Raton, Florida, and led by Chief Executive Marc Ganzi, the companies said. Closing is targeted for the second half of 2026, but remains subject to shareholder approval, regulatory reviews in multiple jurisdictions and consent from many of DigitalBridge’s institutional clients.

Why SoftBank wants DigitalBridge

SoftBank has been repositioning itself around AI and semiconductors after years of volatile returns from its tech-focused Vision Funds. The group now controls about 90% of Arm Holdings and recently completed a $40 billion investment in OpenAI, according to people familiar with the matter and public statements by Son. It is also a founding backer of Stargate, a separate venture that aims to deploy as much as $500 billion on U.S. AI infrastructure, with a goal of building 10 gigawatts of computing capacity by 2029.

Announcing the DigitalBridge deal, SoftBank said the acquisition would help it “build, scale and finance the foundational infrastructure needed for next-generation AI services and applications,” pointing to the need for “compute, connectivity, power, and scalable infrastructure.” Son has said the company’s broader mission is to “realize Artificial Super Intelligence (ASI) for the advancement of humanity.”

What DigitalBridge brings

DigitalBridge has spent the past several years transforming itself from a diversified real estate investment trust once known as Colony Capital into a specialist manager of digital infrastructure assets. It manages more than $100 billion across data centers, cell towers, fiber networks, small cells and related power and edge facilities, using capital from pension funds, sovereign wealth funds and other large investors.

As of mid-2025, DigitalBridge and its portfolio companies controlled or were building more than 5.4 gigawatts of data center capacity, according to company disclosures. Ganzi has described a “power bank” of more than 20 gigawatts of secured electricity across DigitalBridge platforms.

“We have the power. We have the platforms. We have the customer relationships. We are executing,” Ganzi told investors on a recent earnings call, highlighting record leasing volumes. In the third quarter of 2025, the company said it signed more than 2.6 gigawatts of data center leasing, which it estimated amounted to roughly one-third of total U.S. hyperscale leasing during the period.

Pricing, financing and strategic fit

The acquisition price offers current DigitalBridge shareholders a clear premium but falls short of some more optimistic projections for the company’s stand-alone value. Analysts at JPMorgan had previously suggested that, under bullish scenarios, a takeout could justify a price in the high $20s to mid-$30s per share. After the deal was announced, several research firms downgraded the stock to neutral or hold, saying it now trades mainly on the likelihood the merger closes.

For DigitalBridge, the deal promises relief from the capital intensity of the AI infrastructure boom. The firm has outlined more than $40 billion of planned capital expenditures across its data center platforms over the next couple of years, with its own share approaching $30 billion. Ganzi has said fully building out identified projects will require “billions” of additional equity and debt.

Analysts say SoftBank’s balance sheet could provide DigitalBridge with a financial backer able to support large projects and co-invest alongside the funds it manages. RBC Capital Markets argued that SoftBank provides a “capital backstop that would be difficult to replicate independently” while giving SoftBank a ready-made “execution platform” for U.S. and global digital infrastructure.

Buying an established asset manager rather than individual assets also offers SoftBank a recurring fee stream and the ability to deploy third-party capital. DigitalBridge reported fee-earning equity under management of $35.5 billion at the end of 2024 and said fee-related earnings were growing more than 30% year over year.

Competitive landscape

The deal places SoftBank more squarely in competition with private equity firms and strategics amassing digital infrastructure holdings to ride AI and cloud demand. Blackstone led a more than $10 billion buyout of data center operator QTS Realty Trust in 2021 and has since expanded the platform. KKR has launched a $50 billion partnership with Energy Capital Partners to invest in data centers and power, while Equinix and Digital Realty have formed joint ventures with sovereign wealth funds and pensions to build out gigawatts of new capacity.

Regulatory hurdles and deal protections

Because of DigitalBridge’s exposure to U.S. data centers, telecom towers and fiber networks, the transaction will be reviewed by the Committee on Foreign Investment in the United States (CFIUS), which screens foreign purchases of American businesses for national security risks.

Regulators at the Federal Communications Commission and the Federal Energy Regulatory Commission are also expected to examine implications for telecom and power systems, alongside competition and financial supervisors in Europe and Asia. In addition, DigitalBridge must secure consents from fee-paying clients representing at least 85% of a defined revenue base.

The merger agreement includes a no-shop clause restricting DigitalBridge from soliciting alternative bids, but allows the board to consider unsolicited offers it deems superior, subject to giving SoftBank a chance to match and paying a $96 million breakup fee in some scenarios. SoftBank has agreed to a $154 million reverse termination fee if it fails to close under certain regulatory or timing conditions.

Investors treated the transaction as likely but not risk-free. DigitalBridge shares rose toward the $16 offer price but later traded slightly below that level, reflecting uncertainty over the lengthy regulatory process. SoftBank’s stock reaction was muted; the group’s shares had nearly doubled over the course of 2025 on investor enthusiasm for its AI pivot even before the DigitalBridge news.

The bigger issue: power, grids and ownership

Beyond markets, the deal underscores how the AI boom is reshaping global energy and infrastructure planning. Consultants and utilities have warned that rapid data center construction and electrification could drive electricity demand growth, straining grids and forcing difficult choices about generation, transmission and land use. Single hyperscale campuses can require as much power as a small nuclear power plant.

DigitalBridge has positioned itself not only as a data center landlord but also as an investor in power solutions, committing $500 million last year to a company focused on securing energy capacity for data center markets. SoftBank’s Stargate initiative is similarly premised on accessing huge, long-term supplies of electricity.

Regulators and policymakers are also paying closer attention to who owns this infrastructure. Some officials in Europe and the U.S. have raised concerns about the “financialization” of assets such as ports, grids and communication networks, arguing that ownership by global funds can complicate oversight and, in some cases, national security. Supporters of private capital’s role say these investors bring needed financing and expertise to projects governments and traditional utilities might struggle to fund.

SoftBank has some experience owning an alternative asset manager. In 2017 it bought Fortress Investment Group for $3.3 billion, pledging to keep the firm independent while using its expertise to bolster SoftBank’s own investment capabilities. It later sold its majority stake in Fortress to a consortium led by Mubadala Capital and Fortress management, a process completed in 2024.

Whether DigitalBridge becomes a long-term pillar of SoftBank’s AI infrastructure strategy or ultimately follows a similar path remains to be seen. If approved, the transaction would give SoftBank a significant role in deciding where and how much of the world’s new digital infrastructure gets built at a moment when the pace of AI development is putting unprecedented pressure on physical systems.

If AI models are the brains of the emerging economy, the deal underlines that control over the electricity, data halls and fiber lines they depend on is increasingly concentrated in the hands of a few global investors — and that governments, regulators and communities will be watching closely as those investors decide where to plug in.