DigitalBridge Smashes 52-Week High On SoftBank Takeover Buzz - DigitalBridge Gr (NYSE:DBRG), SOFTBANK GRO

DigitalBridge Group Inc. (NYSE:DBRG) shares jumped Monday after a report said SoftBank Group Corp (OTC:SFTBF) (OTC:SFTBY) is in advanced discussions to acquire the digital infrastructure-focused private equity firm.

SoftBank could announce a deal as soon as Monday, according to the report, though no final agreement has been reached. The timing and structure of any transaction could still change.

The terms of the potential transaction remain undisclosed, Bloomberg reported on Monday, citing sources familiar with the matter.

Also Read: Why Softbank CEO Was ‘Crying’ Over Selling Nvidia Stake

DigitalBridge entered the session already up more than 23% year-to-date, with a market valuation of approximately $2.5 billion. The stock’s rally comes despite earlier skepticism from some market watchers. In July, CNBC’s “Mad Money Lightning Round,” Jim Cramer stated that he did not recommend the shares, citing valuation concerns.

SoftBank Deepens AI And Infrastructure Push

The talks align with SoftBank founder Masayoshi Son’s aggressive push into digital infrastructure to support growing demand for computing power tied to artificial intelligence.

That strategy includes the $500 billion Stargate data center initiative announced in January with OpenAI, Oracle Corp. (NYSE:ORCL), and Abu Dhabi-backed MGX. Son has also reshuffled capital to fund AI investments, recently selling a $5.8 billion stake in Nvidia Corp. (NASDAQ:NVDA).

Strong Results Support Capital Deployment

SoftBank reported higher second-quarter results in November, driven by gains across key businesses. Quarterly net sales rose to 1.92 trillion yen ($12.99 billion) from 1.77 trillion yen a year earlier, while segment net sales increased 7.8% to 1.74 trillion yen.

Arm Holdings Plc (NASDAQ:ARM) posted 32% revenue growth to 167.4 billion yen and returned to profit. SoftBank reported income before tax of 2.996 trillion yen and net income of 2.50 trillion yen, aided by 3.44 trillion yen in investment gains and a 2.76 trillion yen Vision Fund profit.

The company also completed 330.3 billion yen in share buybacks, retired the shares, and approved a four-for-one stock split.

DBRG Price Action: DigitalBridge shares were up 30.75% at $18.20 during premarket trading on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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