Home / Business and Economy / DigitalBridge Soars on SoftBank Acquisition Rumors
DigitalBridge Soars on SoftBank Acquisition Rumors
30 Dec
Summary
- DigitalBridge's stock surged 9.7% on Monday to close at $15.27.
- SoftBank reportedly agreed to acquire DigitalBridge for $16 per share.
- Trading volume for DigitalBridge shares was significantly higher than average.
DigitalBridge Group (NYSE:DBRG) saw its stock price climb by 9.7% on Monday, closing at $15.27. This notable increase was fueled by reports indicating that SoftBank has reached an agreement to acquire DigitalBridge for $16 per share in cash. The trading volume on Monday was exceptionally high, reaching 86 million shares, which is about 14 times its typical three-month average of 6 million shares.
The potential acquisition comes as SoftBank continues to expand its digital infrastructure portfolio to support the growing demand for AI technologies. DigitalBridge's assets, including data centers, cell towers, and edge computing facilities, are seen as a strategic fit for SoftBank's expansion plans. Despite the recent price surge, DigitalBridge's stock has declined 71% since its initial public offering in 2014.
Market analysts are observing how the merger review will proceed and how shareholders will respond to the offer. While DigitalBridge has received recent price targets of $23 and $20, it remains uncertain if SoftBank's $16 per share offer will be sufficient to gain shareholder approval, especially given the stock's performance over the past month and its long-term decline.
