Stock Market Today, Dec. 29: DigitalBridge Group Surges on Deal With SoftBank to Acquire the Company for $4 Billion

DigitalBridge Group (NYSE:DBRG), a global digital-infrastructure investor-operator, closed Monday at $15.27, up 9.7%. DigitalBridge Group IPO'd in 2014 and has fallen 71% since going public. Trading volume reached 86 million shares, about 14 times higher than its three-month average of 6 million shares.

Monday’s action centered on reports that SoftBank (OTC:SFTB.Y) agreed to acquire DigitalBridge for $16 per share in cash. Investors are watching how the merger review and shareholder response unfold.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) slipped 0.33% to 6,907, while the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.50% to 23,474. Within digital infrastructure peers, Digital Realty Trust (NYSE:DLR) and Equinix (NASDAQ:EQIX) inched 0.44% and 0.22% higher, respectively, as investors assess ongoing data center demand and long-term leasing agreements.

What this means for investors

Three weeks after it was first rumored that Japanese next-gen technology conglomerate SoftBank was interested in acquiring DigitalBridge, an official offer of $16 per share was announced this morning. As SoftBank continues to build out the digital infrastructure needed to fuel AI's unstoppable growth, DigitalBridge's portfolio of data centers, cell towers, and edge computing infrastructure appears to be a perfect fit.

That said, DigitalBridge has received two recent price targets of $23 and $20 for its stock, so it remains to be seen if today's offer is large enough to win over shareholders. With the stock up over 50% in just the last month -- yet down 71% since it went public 11 years ago -- it's tough to gauge what shareholders' reception will be.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust and Equinix. The Motley Fool has a disclosure policy.