Continue to continue to add chips to the AI infrastructure! SoftBank is in talks to privatize DigitalBridge (DBRG.US), with JP Morgan valued at $35 per share.

According to informed sources, SoftBank is currently in negotiations with DigitalBridge (DBRG.US) in hopes of acquiring the publicly-listed company and privatizing it. The latter is a private equity firm that invests in assets such as data centers, and SoftBank's move aims to take advantage of the AI-driven digital infrastructure construction boom. The stock price of DigitalBridge has dropped by 13% so far this year, but rose nearly 45% on Friday, marking its largest single-day increase ever with a closing price of $14.12, bringing the company's market value to $2.58 billion. SoftBank founder Masayoshi Son is trying to profit from the increasing demand for computing power required by AI applications. According to sources, the deal could potentially be reached in the coming weeks, but it is currently in the negotiation stage and it is uncertain whether an agreement can be reached. As of the end of September, DigitalBridge, led by CEO Marc Ganzi, managed approximately $108 billion in assets. Its portfolio includes digital infrastructure operators such as AIMS, AtlasEdge, DataBank, Switch, Vantage Data Centers, and the Yondr Group. The potential selling price of the company could be between $25 and $35. Analysts at JPMorgan pointed out in a report on Friday that the stock price of DigitalBridge could reach $25 per share under conservative estimates, with potential upside to $30-35. JP Morgan analysts stated, "Based on our forecasts for 2026, we see an attractive exit price for the stock at $28 per share, but if we view 2027 forecasts with higher valuation multiples, the valuation range could reach $30 to $35 per share." In a research report on October 30, Raymond James analyst Ric Prentiss stated that for a large-scale alternative asset management company with a fund-raising infrastructure, acquiring DigitalBridge would be a wise move rather than standing idle. Prentiss wrote, "We believe that DigitalBridge may consider a sale, but this is subject to a reasonable (and far higher than current levels) price and favorable terms." SoftBank has had related transactions in its asset management division before. In 2017, it acquired Fortress Investment Group for over $30 billion. Eventually, it sold its stake to a group including Mubadala Investment, a sovereign wealth fund from Abu Dhabi, and the transaction was completed in 2024. In January of this year, SoftBank, OpenAI, Oracle Corporation (ORCL.US), and Abu Dhabi's MGX company jointly announced a $500 billion project called "Stargate" aimed at building data centers in the United States. Although Masayoshi Son promised to immediately invest $100 billion, the progression of the "Stargate" project has been slower than planned, partly due to disagreements on where the data centers should be located. In May, it was reported that SoftBank initially sought project financing from external investors including insurance companies, pension funds, and investment funds, but some negotiations were slowed down by market fluctuations, uncertainties in US trade policies, and doubts about the financial valuation of AI hardware. In September, OpenAI, Oracle Corporation, and SoftBank announced plans to build five new power stations in Texas, New Mexico, and Ohio, with a total power generation capacity of 7 billion watts, equivalent to the electricity consumption of some cities. This move by SoftBank requires reallocation of funds in part. Therefore, Masayoshi Son expressed his disappointment this week as he had to sell his stake in NVIDIA Corporation worth $5.8 billion in order to redirect the funds towards investments in other AI aspects.