DigitalBridge Shares Skyrocket on SoftBank Acquisition Rumors
Shares of DigitalBridge, a prominent player in data center investments, experienced a dramatic surge in pre-market trading on Monday, soaring as much as 50%. This significant jump followed a report indicating that Japan’s SoftBank Group is in advanced discussions to acquire the New York-listed firm.
According to sources familiar with the matter, SoftBank could potentially announce a deal as early as Monday. Both SoftBank and DigitalBridge have declined to comment on the ongoing speculations.
At the peak of its pre-market rally, DigitalBridge’s stock was up approximately 50%. While the surge moderated slightly, the shares remained substantially higher, trading up around 34% in early trading. This impressive performance adds to its year-to-date gains, which stand at roughly 23%.
This potential acquisition unfolds against the backdrop of a burgeoning global demand for the digital infrastructure that powers artificial intelligence. The report also aligns with SoftBank’s strategic pivot, as the Japanese technology conglomerate has been actively reallocating its investments. Notably, SoftBank recently divested its entire stake in U.S. semiconductor giant Nvidia, a move that generated $5.83 billion. This strategic sale is widely understood to have paved the way for SoftBank’s increased focus on investments in generative AI, including a significant commitment to OpenAI.
DigitalBridge positions itself as a “unique digital infrastructure business.” As of the close of September, the company managed approximately $108 billion in assets, highlighting its substantial footprint in the digital infrastructure sector. The potential acquisition by SoftBank could represent a major strategic move for both entities, capitalizing on the accelerating demand for data centers and cloud computing resources driven by AI advancements.
The convergence of SoftBank’s deep capital resources and strategic vision with DigitalBridge’s established infrastructure portfolio could create a formidable force in the digital real estate landscape. Analysts will be closely watching for further developments, as this potential deal could reshape the competitive dynamics within the data center investment arena.
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