SoftBank's Strategic Move to Acquire DigitalBridge: A Catalyst for AI-Driven Digital Infrastructure Growth?

In a bold maneuver to capitalize on the AI infrastructure boom, SoftBank Group Corp. is reportedly in advanced negotiations to acquire DigitalBridge Group Inc., a leading digital infrastructure asset manager. This potential deal, if finalized, could redefine the competitive landscape for AI-ready infrastructure and unlock significant value in DigitalBridge's underappreciated assets. With global demand for data centers and AI-driven computing surging, the acquisition aligns with SoftBank's long-term vision to position itself at the forefront of the next technological revolution.

Strategic Rationale: Bridging Gaps in AI Infrastructure

DigitalBridge's core competencies in managing data centers, telecom towers, and fiber networks make it a strategic fit for SoftBank's expanding portfolio. The company has already demonstrated its commitment to AI-era infrastructure by securing $11.7 billion in commitments for its DigitalBridge Partners III (DBP III) fund, a figure that underscores institutional confidence in its ability to scale next-generation assets like hyperscale data centers and edge networks. This fundraising success, coupled with a strategic partnership with South Korea's KT Corporation to develop AI data centers, positions DigitalBridge as a key player in regions experiencing rapid AI adoption.

SoftBank's interest in DigitalBridge is not merely opportunistic. The Japanese conglomerate has been aggressively reallocating capital to AI-related ventures, including stakes in OpenAI and Ampere, as well as the acquisition of ABB's robotics unit. By integrating DigitalBridge's infrastructure assets, SoftBank could create a vertically integrated ecosystem that supports AI development from hardware to deployment. As noted by Bloomberg, this move aligns with SoftBank's broader strategy to "enhance its digital infrastructure holdings" amid rising global demand for advanced data management solutions.

Undervalued Assets: A Mismatch Between Fundamentals and Market Perception

Despite DigitalBridge's strategic relevance, its stock has underperformed, declining roughly 14% year-to-date and trading at a price-to-earnings (P/E) ratio of 87.1x-well above both its peer average (13.6x) and the industry benchmark (23.9x) according to Simply Wall St. This disconnect suggests that the market may be undervaluing the company's long-term potential. Analysts estimate DigitalBridge's fair value at $16.50, compared to its current price of $9.86, indicating a potential upside of over 60%.

The undervaluation is further highlighted by DigitalBridge's operational performance. In Q3 2025, the company exceeded earnings expectations by 1,100%, reporting an EPS of $0.12 against a forecast of $0.01. However, its revenue of $93.5 million fell slightly short of projections, contributing to investor skepticism. This discrepancy between earnings strength and revenue growth has likely exacerbated the stock's underperformance, despite the company's robust capital-raising capabilities and strategic partnerships.

Unlocking Value: How SoftBank Could Revalue DigitalBridge's Assets

A SoftBank acquisition could address these valuation gaps by leveraging the Japanese firm's financial firepower and global reach. With over $40 billion allocated to AI-related investments, SoftBank is uniquely positioned to fund DigitalBridge's expansion into high-growth areas like hyperscale data centers and AI-specific infrastructure according to Proactive Investors. This influx of capital could accelerate the deployment of AI-ready assets, which are projected to drive $6.7 trillion in global spending by 2030, according to McKinsey.

Moreover, SoftBank's track record in scaling technology ventures-such as its transformative investments in Alibaba and Arm-suggests it has the expertise to optimize DigitalBridge's operations. For instance, DigitalBridge's recent divestiture of its Digita Group subsidiary to GI Partners indicates a focus on core infrastructure assets, a strategy that aligns with SoftBank's emphasis on operational efficiency. By consolidating DigitalBridge's portfolio under its umbrella, SoftBank could streamline costs, enhance asset utilization, and accelerate returns for stakeholders.

Conclusion: A Pivotal Moment for AI Infrastructure

SoftBank's potential acquisition of DigitalBridge represents more than a strategic acquisition-it is a calculated bet on the future of AI-driven infrastructure. By combining DigitalBridge's asset management expertise with SoftBank's capital and technological vision, the deal could catalyze a new era of innovation in digital infrastructure. For investors, the key question is whether the market will eventually recognize the intrinsic value of DigitalBridge's assets, now poised for revaluation under SoftBank's stewardship.

As the deal nears finalization, all eyes will be on how this partnership reshapes the AI infrastructure landscape-and whether it delivers the transformative returns that both companies have long envisioned.