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Shining a light on PE ownership.

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DI

DigitalBridge

Data centers
PE-OWNED

PE-OWNED

Acquired by SoftBank

View PE Firm Profile

What PE Will Likely Do

Predictions

Increased data center downtime and service disruptions due to deferred maintenance and infrastructure upgrades

HIGH LIKELIHOODBased on: SoftBank's track record of aggressive cost-cutting and debt loading in acquired companies

Reduced data storage capacity and bandwidth as DigitalBridge scales back investment in new hardware and network expansion

HIGH LIKELIHOODBased on: The data center industry's history of PE firms prioritizing short-term profits over long-term infrastructure investment

Higher data center operating costs passed on to customers through price hikes or hidden fees

HIGH LIKELIHOODBased on: The typical playbook of PE-owned companies in the retail sector, which often involves degradation of service quality

Longer customer support wait times and reduced quality of technical support due to staff reductions

HIGH LIKELIHOODBased on: The typical playbook of PE-owned companies in the retail sector, which often involves degradation of service quality

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements about 'synergies' and 'operational optimizations' that will improve efficiency

6-12 monthsYOU ARE HERE

“6 to 12 months months”

First round of staff reductions in non-revenue-generating departments like IT and facilities

12-24 months

“12 to 24 months months”

Noticeable increase in data center outages and degradation of service quality metrics

24-48 months

“24 to 48 months months”

Rumors of DigitalBridge struggling to service its debt load, leading to further cost-cutting measures

48-60 months

“48 to 60 months months”

Potential restructuring, sale, or bankruptcy of DigitalBridge if cost-cutting fails to improve profitability

Similar Cases

Other companies that followed a similar path after PE acquisition

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What You Can Do

Take Action

Actions

  • Research DigitalBridge's service level agreements and consider alternative data center providers that prioritize reliability and long-term investment

  • Monitor DigitalBridge's public announcements and news coverage for signs of deteriorating service quality or financial distress

  • Advocate for stronger regulatory oversight of PE acquisitions in the critical infrastructure sector to protect consumers and businesses

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"DigitalBridge is now PE-owned. Here's what that means for you."