DigitalBridge Stock Soars 28% on SoftBank Acquisition Talks
Shares in the digital infrastructure investor were halted after a report that SoftBank is in advanced discussions to take the company private.
Shares of DigitalBridge Group Inc. (NYSE: DBRG) skyrocketed as much as 28.6% in Friday trading following a report that SoftBank Group Corp. is in advanced talks to acquire the digital infrastructure investment firm.
The stock surged to an intraday high of $12.50 before trading was temporarily halted due to the volatility. The intense buying pressure was triggered by a Bloomberg News report indicating that discussions for a potential deal are well underway, with an agreement possible in the coming weeks. If finalized, the transaction would see SoftBank take the New York-listed private equity firm private.
DigitalBridge, which manages a global portfolio of assets including data centers, cell towers, and fiber networks, has become a prime target amid the explosive growth in artificial intelligence. The infrastructure assets it controls are the physical backbone required to power the increasing demand for computing capacity driven by AI applications.
For SoftBank, the potential acquisition represents a strategic move to deepen its investments in the essential hardware layer of the technology ecosystem. The Japanese conglomerate has been aggressively positioning itself to capitalize on the AI boom, and acquiring DigitalBridge would grant it direct control over a significant portfolio of the data centers that are critical for training and deploying AI models.
Prior to Friday's surge, DigitalBridge shares had declined about 13% year-to-date, giving the company a market capitalization of approximately $1.8 billion. The stock's dramatic jump pushed its market value well over the $2 billion mark, reflecting strong investor optimism that a deal will materialize.
The Boca Raton, Florida-based firm has been actively managing its portfolio to focus purely on digital infrastructure. This strategy involves investing in high-growth areas like hyperscale data centers and edge computing facilities that serve the world's largest technology companies. According to the company's investor relations page, DigitalBridge has consistently messaged its commitment to being a premier investor in the digital economy.
Wall Street analysts have maintained a broadly positive outlook on the company, even before the acquisition news. The consensus analyst price target for DBRG stock stands at $17.28, suggesting that many see further upside potential based on the intrinsic value of its asset portfolio. The firm holds a consensus 'Moderate Buy' rating, with eight of nine analysts covering the stock rating it as either a 'Buy' or 'Strong Buy'.
While neither DigitalBridge nor SoftBank has officially commented on the report, the potential transaction underscores a wave of consolidation in the digital infrastructure space. As technology giants race for AI dominance, the ownership of the underlying physical assets has become increasingly strategic. A successful acquisition would align with SoftBank's long-term vision and provide DigitalBridge with the backing of a global technology powerhouse to accelerate its growth.