SoftBank preps AI-fuelled bid for DigitalBridge

• Japan’s SoftBank Group already has its fingers in many AI-related pies
• Now it has been linked to a potential takeover bid for infrastructure investor DigitalBridge

Never shy of an M&A opportunity, Masayoshi Son’s SoftBank Group is believed to be in talks to acquire private equity firm DigitalBridge Group, which manages investments in datacentres, mobile towers, fibre access networks, small cells and network edge infrastructure, according to reports that emerged over the weekend.  

The giant Japanese conglomerate, which counts Japanese telco SoftBank Corp. among its operations, is already heavily involved in the digital infrastructure sector and has thrown its weight behind some major AI developments over the past couple of years, including the massive Stargate AI datacentre project first announced about a year ago – see Tech giants unveil $500bn AI investment plan in the US.

Now, according to news agencies including Bloomberg and Reuters, SoftBank Group is in discussions to acquire DigitalBridge, which has about $108bn of assets under its management. The 45-plus companies through which it manages investments on behalf of its partners and shareholders include Vantage Data Centers, AtlasEdge Data Centres, Scala Data Centers and long-distance US and European network operator Zayo.  

The company also recently announced it had signed an agreement with South Korean telco and AI services sector hopeful KT Corp. to “collaborate on the development of next-generation AI datacentres” in the country.

The news lit a fire under the investment firm’s share price, sending it up by more than 40% to $14.12 for a market valuation of almost $2.6bn. 

Talks are believed to be advanced, with an announcement potentially in the works before the end of this year.   

- Ray Le Maistre, Editorial Director, TelecomTV