SoftBank Eyes Data Center Group Switch
SoftBank Group Corp. is exploring possible acquisitions, including data center operator Switch Inc., as billionaire founder Masayoshi Son intensifies the quest for deals that can enable it to benefit from the AI-driven surge in digital infrastructure, according to reports.
The Japanese firm has talked with Switch executives and has been performing due diligence on the private company, the reports mentioned, requesting anonymity due to the confidential nature of the information.
SoftBank has likewise engaged in extensive discussions regarding a possible acquisition of one of Switch's primary private equity investors, the New York-listed investment company DigitalBridge Group Inc.
Son has sought methods to take a more significant part in an artificial intelligence competition that has boosted SoftBank’s longstanding business ally Nvidia Corp. to become the world's most valuable firm.
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Acquiring Switch, a company focused on creating and managing energy-efficient data centers, would enable the Japanese billionaire to manage a critical hurdle in AI advancement.
The proprietors of Switch have been pursuing a valuation of approximately $50 billion, including debt, for the data center operator in any agreement, according to some individuals.
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According to reports, they have also been concurrently readying for a possible initial public offering of Switch by early next year. Backers of Switch have been contemplating a valuation of approximately $60 billion, including debt, for a public offering of the company.
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The SoftBank team frequently reviews many potential agreements within a specific sector before choosing which transaction to follow, and at times, it chooses to engage in several deals in an area where it aims to grow quickly. Purchasing Switch would enable SoftBank to fully own a significant collection of data centers during a period when the demand for their computing capabilities is increasing swiftly.