DigitalBridge Acquisition by SoftBank Faces Shareholder Scrutiny Over $16.00 Per Share Price

DigitalBridge Sale to SoftBank Under Legal Review

The proposed acquisition of DigitalBridge Group, Inc. (DBRG) by SoftBank Group Corp. has triggered an investigation by the law firm Kahn Swick & Foti, LLC (KSF), focusing on the financial terms and procedural fairness of the deal. Under the terms of the proposed transaction, DigitalBridge shareholders are set to receive $16.00 in cash for each share they own.

KSF, spearheaded by former Attorney General of Louisiana Charles C. Foti, Jr., Esq., announced the probe, stating its intent to determine whether the $16.00 consideration adequately compensates shareholders and whether the process leading to the agreement was robust and fair. The investigation is specifically examining potential breaches of fiduciary duty by the DigitalBridge board of directors and its officers.

Focus on Valuation and Fiduciary Duty

The core of the legal inquiry revolves around the valuation of the digital infrastructure company. DigitalBridge, which specializes in managing and investing in digital assets like data centers, cell towers, and fiber networks, operates in a sector that has seen significant growth and investor interest. KSF is seeking to ascertain if the board maximized shareholder value or if the proposed sale price undervalues the company's future prospects and underlying assets.

“KSF is seeking to determine whether this consideration and the process that led to it adequately compensates DigitalBridge shareholders,” the firm stated in its investor alert.

Shareholder investigations of this nature are common following major corporate transactions, particularly those involving a significant premium or a change in control. However, the outcome can sometimes lead to class-action lawsuits seeking greater compensation for minority shareholders or changes to the deal structure if evidence of procedural flaws or inadequate valuation is found.

Market Implications and Next Steps

The investigation introduces a layer of uncertainty into the merger timeline between DBRG and SoftBank. While the $16.00 per share price represents a fixed cash offer, the legal scrutiny suggests that some investors believe the intrinsic value of DigitalBridge exceeds this amount, especially given the strategic importance of digital infrastructure assets in the current economic climate.

The investigation will involve reviewing:

• The financial analyses performed by DigitalBridge’s financial advisors.
• The sales process, including whether the board adequately shopped the company to other potential bidders.
• The independence and motivations of the board members involved in approving the transaction.

DigitalBridge Group, Inc. has not yet publicly commented on the investigation. Shareholders who believe the $16.00 per share offer is insufficient are encouraged to contact KSF as the firm prepares to potentially file litigation to protect shareholder interests. The successful completion of the deal remains contingent on shareholder approval and regulatory clearances, which could be complicated by ongoing legal challenges.