Softbank is in advanced talks to acquire DigitalBridge Group for $4 billion
DigitalBridge Group Inc (NYSE:DBRG) stock is surging today, last seen up 9.9% at $15.30, after news that Japan-based Softbank is in advanced talks to acquire the company for $4 billion in an effort to expand its AI infrastructure. Softbank CEO Masayoshi Son stated that the deal “will strengthen the foundation for next-generation AI data centers, advance our vision to become a leading ASI platform provider, and help unlock breakthroughs that move humanity forward."
Today’s pop has DBRG hovering just below its Dec. 9 one-year high of $15.55. The shares are up 57.3% in just the last month, mostly due to a 45.3% rise on Dec. 5, which was triggered by the start of the Softbank rumors. The equity is sporting a 35.5% year-to-date lead, while the 20-day moving average emerged as support last week.
Options traders are blasting DigitalBridge Group stock after the news. So far, 27,000 calls and 4,948 puts have been exchanged, which is already seven times the stock’s average daily options volume. The March 16 call is the most popular, with new positions being sold to open there.
Some of today’s gains could be attributed to short covering, as short interest represents 6.4% of the stock’s available float. It would take shorts 2.5 days to buy back their borrowed shares, at DBRG’s average pace of trading.