Softbank Expands Bets on AI with $4B Deal to Buy DigitalBridge

Softbank announced on Monday that it has agreed to acquire DigitalBridge in an all-cash deal which values the digital infrastructure investment firm at $4 billion.

The Japanese venture capital firm positioned its takeover of DigitalBridge, which controls data centre operators Vantage and Yondr Group, as part of its “mission to realize Artificial Super Intelligence (ASI) for the advancement of humanity.”

“As AI transforms industries worldwide, we need more compute, connectivity, power, and scalable infrastructure,” Masayoshi Son, chairman and CEO of SoftBank Group said in a statement. “DigitalBridge is a leader in digital infrastructure, and this acquisition will strengthen the foundation for next-generation AI data centers, advance our vision to become a leading ASI platform provider, and help unlock breakthroughs that move humanity forward.”

The agreement marks Softbank’s latest multi-billion dollar bet on artificial intelligence, with Son having said in June this year that he plans to invest more than $33 billion in ChatGPT-parent OpenAI. The two companies announced in September that they have partnered with Oracle for five data centre projects as part of the $500 billion Stargate initiative, with at least one of those facilities being developed in cooperation with DigitalBridge’s Vantage unit.

Buying at a 50% Premium

Softbank is paying $16 per share for the outstanding stock of NYSE-listed Digital Bridge, which represents a premium of 15 percent to the stock’s closing price on 26 December and a 50 percent markup from the unaffected 52-week average closing price as of 4 December.

The offer has been unanimously recommended by a special committee of independent directors on DigitalBridge’s board, with the full board having subsequently given unanimous approval to the transaction. 

Subject to fulfillment of transaction terms and regulatory approval, the deal is expected to close in the second half of 2026. Following conclusion of the buyout, DigitalBridge will continue to operate as a separately managed platform, led by its current chief executive, Marc Ganzi, DigitalBridge said. 

“The buildout of AI infrastructure represents one of the most significant investment opportunities of our generation,” Ganzi said in a statement. “SoftBank shares our DNA as builders and long-term investors committed to scaling transformational digital infrastructure. Their vision, capital strength, and global network will allow us to accelerate our mission with greater flexibility, invest with a longer-term horizon on behalf of our investors, and better serve the world’s leading technology companies as they scale their AI ambitions.”

Building DigitalBridge

Softbank pointed to DigitalBridge’s global footprint and sector expertise as enhancing its ability to originate, finance, operate, and scale digital infrastructure businesses worldwide as part of the rationale for the investment. 

With DigitalBridge controlling data centre platforms in North America, Europe and Asia Pacific, Softbank keyed on the target company’s diversified portfolio and investment capabilities as helping it to secure AI capacity at scale and strengthening the underpinnings of AI deployment and operations.

Formerly known as Colony Capital, the company took on the DigitalBridge brand in 2021 to signify its focus on data centres and other digital infrastructure. Colony had acquired Digital Bridge in 2019 for $325 million. That deal came after DigitalBridge had teamed up with Public Sector Pension Investment Board and TIAA to purchase Vantage Data Centers in 2017 for a reported $1 billion. 

DigitalBridge boosted its Asia presence in 2021 with the purchase of Hong Kong-based PCCW’s data centre business in Greater China and Malaysia for $750 million. In 2022, DigitalBridge acquired a stake in Malaysia’s AIMS Data Centres for $438 million. 

After DigitalBridge teamed up with Canadian pension fund manager La Caisse to acquire Yondr Group for $5.8 billion in a deal which closed in July this year, Vantage teamed up with Singapore’s GIC and the Abu Dhabi Investment Authority to buy a Yondr data centre campus in Malaysia for $.16 billion in a purchase announced in September. 

Softbank’s Next Big Bet

Notorious for immolating as much as $14 billion in investor cash as the main backer of WeWork, Softbank’s Son stands out as potentially the most aggressive investor in AI platforms and infrastructure. 

Softbank jointly announced the Stargate data centre venture with OpenAI and Oracle in January, with the partners pledging to invest $500 billion over the next four years building new AI infrastructure for OpenAI in the US.

With Softbank currently holding around 11 percent of OpenAI, Son and his team plan to boost that stake through fresh cash commitments, with the company last month selling its entire $5.8 billion stake in chipmaker NVIDIA, and disposing of $4.8 billion in T-Mobile US stock, to meet a $22.5 billion commitment to OpenAI, according to Reuters.

Earlier this month Australian data centre platform NextDC said it was working with OpenAI to develop and operate AI data centres in the country, with the artificial intelligence company also reported to be working on digital infrastructure deals in India and South Korea. Softbank and OpenAI announced a Japan joint venture last month.