At the time of writing, the NextDC share price has jumped a hefty 8.5% to $17.45 apiece following news that US private equity giant Blackstone is set to acquire Sydney-based AirTrunk for a staggering $24 billion.

This massive deal in the digital infrastructure world has investors buzzing.

Let's see what the situation is.

AirTrunk: A tailwind for the NextDC share price?

The AirTrunk acquisition, which values the private company at more than $24 billion, highlights the growing global demand for data centre capacity.

The demand is fuelled by the growth in cloud computing and artificial intelligence (AI) — and with their rise, the need for vast amounts of data storage and processing power is greater than ever.

As more businesses adopt AI, demand for high-capacity data centres — such as those operated by NextDC and AirTrunk — is expected to increase.

Blackstone estimates approximately US$1 trillion in capital expenditures on data centres over the next five years, both in the US and globally.

The focus on cybersecurity is another growth driver for data centres.

Companies and governments are now prioritising the storage of sensitive data – especially in light of recent major data breaches.

AirTrunk boasts more than 800 MW of data centre capacity across markets in the Asia Pacific.

How does NextDC stack up?

NextDC operates 16 data centres across Australia, catering to hyperscale clients, government agencies, and Australian enterprises.

It's also looking to expand internationally with plans for facilities in Auckland, Tokyo, and Kuala Lumpur.

For FY24, the company posted 12% sales growth, which translated to 10% net profit growth.

Looking ahead, it expects revenue between $340 million and $350 million, calling for growth of 10-14%.

Although these numbers fell slightly short of analyst expectations, NextDC management is bullish.

CEO Craig Scroggie said the company continued to make "strategic investments to expand [its] platform", putting it at the "forefront of the digital infrastructure boom, driven by the fourth industrial revolution."

Analysts at Morgans rated the NextDC share price a buy with a price target of $20.50.

Meanwhile, E&P Capital analyst Paul Mason highlighted that NextDC's valuation currently sat at around 27 times its earnings before interest, tax, depreciation, and amortisation (EBITDA).

This was thanks to its stable earnings and high-quality tenants, Mason told The Australian Financial Review.

Meanwhile, analysts at Goldman Sachs recently rated the stock a buy due to its "compelling growth profile and profitable business model."

Foolish takeaway

The AirTrunk sale has created a stir amongst the investment community after its $24 billion price tag.

Whilst investors have reacted positively to the news by lifting stocks within the broader AI and data-related industries, NextDC also has plenty going on.

The NextDC share price is up 35% in the last 12 months.

The post NextDC share price rides high on AirTrunk's $24 billion cloud appeared first on The Motley Fool Australia.

While Crown has officially knocked back Blackstone, it's still considering the merger proposal put to it by Star Entertainment Group Ltd (ASX: SGR).

The acquisition offer from Blackstone was proposed on 22 March and revised twice, with the latest revision announced last week. It would have seen Blackstone buying all shares in Crown and paying $12.35 per share.

Let's take a look at the news driving the Crown share price today.

No deal 

According to Crown, its board unanimously agreed that the offer undervalued Crown and wasn't in its shareholders' best interests.

The board took into account both revisions of the offer. The first being that Blackstone could take on greater regulatory risk in exchange for faster acquisition. The second, an offer of an extra 50 cents per share more than the original offer of $11.85 per share.

Crown stated the original takeover offer was only a 19% premium on the volume-weighted average price between the release of its results from the first half of the 2021 financial year and Blackstone's initial acquisition offer.

It also said the prices revision only represented a 4% increase on the original offer despite the S&P/ASX 200 Index (ASX: XJO) gaining 6% in the time between the initial offer and the second revision.

The offer was also rejected because of its timing. Crown stated it came at an opportune moment. Right in between the release of Crown's loss of earnings due to COVID-19 and the enactment of its plan to pay off a significant portion of debt.

Crown has rejected Blackstone's offer despite reports on Friday that its substantial shareholder Perpetual Investments was pushing for Crown's board to sell the business.

Star merger still on the cards

After turning down Blackstone, Crown advised that its board still hasn't made a decision regarding Star Entertainment's merger proposal.

Star proposed the merger last Monday. At the time, The Motley Fool Australia reported Star believed the merger could "create a national tourism and entertainment leader with a world-class portfolio of integrated resorts".

The merger would see Star trading 1 Crown share in for 2.68 shares in Star Entertainment.

Today, Crown announced it has requested more information from Star to help its board better understand some preliminary matters.

Crown share price snapshot

The Crown share price has performed well on the ASX this year.

Currently, the Crown share price is up 32.9% year to date and has lifted 42.4% over the last 12 months.

The company has a market capitalisation of around $8.8 billion, with approximately 677 million shares outstanding.

The post Crown (ASX:CWN) share price lifts on acquisition rejection appeared first on The Motley Fool Australia.