Digital Bridge's SoftBank Acquisition Sparks Mixed Reactions
"Don't talk about this one a lot. Ticker is DBRG, Digital Bridge, but it's definitely moving in today's session. We were seeing it earlier up for double digit gains. Now, it's about up about 9.8%. This is a data center company. Uh, and essentially, we did hear that SoftBank is buying the company for about $3 billion. This is a 65% premium to Digital Bridge's closing share price earlier this month back on December 4th. So, this transaction is expected to close in the second half of next year pending regulatory approvals. But clearly, you are seeing the stock getting a pop here. Shares are up about 36% so far this year. But Raymond James though, they're saying that they call this deal quote unquote underwhelming in terms of the deal price."
Digital Bridge (DBRG) is experiencing a significant move in response to SoftBank's $3 billion acquisition offer, which represents a 65% premium over its recent closing price. The deal, expected to close in the second half of next year pending regulatory approvals, has driven the stock up nearly 10% in the current session and 36% year-to-date, although Raymond James criticizes the deal price as underwhelming.
Digital Bridge Share Surge Amid M&A Activity
"Oh, for sure. And what is today's Monday, right? So, we could say M&A Monday perhaps. Looking at shares of Digital Bridge. This is actually a company I had to look into. This is ticker DBRG. Uh it's about $2.7 billion in market cap. We're seeing shares surging as much as 10% for double digit gains. This is the highest level we've seen for the company since October of last year. This is after SoftBank Group agreed to pay for um the company. Here we are seeing that Raymond Jane's analysts are saying that they called the valuation quote unquote underwhelming for this deal. But you are clearly seeing the street taking a liking to this at least if you look at the share performance for this company in particular. Shares up about 9.7 right now. But on a year-to-date basis we've seen the stock gain about 35%."
The speaker discusses Digital Bridge (DBRG) amid an active M&A environment, noting that the company's shares are surging up to 10%—a high not seen since last October—following SoftBank Group's involvement. While some analysts describe the valuation as 'underwhelming,' the market's strong reaction, with a nearly 10% intraday rise and a 35% year-to-date gain, underscores the positive sentiment.