SoftBank explores DigitalBridge buyout to expand data center investments

SoftBank Group Corp. is in advanced discussions to acquire DigitalBridge Group Inc. (DBRG), a private equity firm focused on data centers and related assets, according to people familiar with the matter.

The Japanese conglomerate could announce an agreement as soon as Monday for the New York-listed firm, the people said. They asked not to be identified because the talks are private.

A final agreement has not been reached. Details, including the timing, could still change, the people said.

Representatives for SoftBank Group Corp. and DigitalBridge did not immediately respond to requests for comment.

DigitalBridge shares had fallen about 13 percent this year before the talks on Dec. 5. The stock rose about 45 percent that day. The company now has a market value of roughly $2.5 billion. Including debt, its enterprise value is about $3.8 billion, according to data compiled by Bloomberg.

The potential deal is part of SoftBank’s broader effort to benefit from rising demand for digital infrastructure tied to artificial intelligence. Founder Masayoshi Son has focused on investments that support large-scale computing capacity.

DigitalBridge is led by Chief Executive Officer Marc Ganzi. The firm reported about $108 billion in assets under management at the end of September, according to its website. Its portfolio includes operators such as AIMS, AtlasEdge, DataBank, Switch, Vantage Data Centers and Yondr Group.

SoftBank has made similar moves in asset management before. In 2017, it acquired Fortress Investment Group for more than $3 billion. The company later sold its stake to a group that included Abu Dhabi sovereign wealth fund Mubadala Investment Co. and Fortress management. That transaction was completed in 2024.

In January, SoftBank announced a $500 billion data center project called Stargate with OpenAI, Oracle Corp. and Abu Dhabi’s MGX. The effort has progressed more slowly than first outlined, partly because of disagreements over site locations.

SoftBank has also adjusted its holdings to fund AI investments. Son said this month he sold a $5.8 billion stake in Nvidia Corp. to reallocate capital toward other projects.