Video sharing platform and cloud service provider Rumble (Nasdaq: RUM) announced today (11th) that it has made an acquisition offer to Northern Data AG (German Stock Exchange Code: NB2), a German AI and high-performance computing (HPC) solutions company, planning to spend 1 billion euros (approximately $1.17 billion) to acquire all outstanding shares of Northern Data through an all-stock transaction. Rumble stated that this transaction aims to integrate Northern Data's advanced AI infrastructure and enhance Rumble's competitiveness in the global AI cloud services market.
Acquisition Plan Details
According to Rumble's announcement, the key terms of the potential acquisition offer (hereinafter referred to as the "offer") include:
First, exchange ratio: Each Northern Data shareholder participating in the offer is expected to exchange each Northern Data share for 2.319 newly issued Rumble Class A common shares, valued at approximately $18.3 per share, at a discount of about 32% from Northern Data's recent closing price.
Second, equity structure: If all Northern Data outstanding shares participate in the offer, Northern Data shareholders will hold approximately 33.3% of the merged Rumble.
Third, business integration: Rumble plans to integrate Northern Data's GPU cloud services business Taiga (owning approximately 20,480 Nvidia H100 and 2,048 H200 GPUs) and data center business Ardent (with nearly 850 MW potential power capacity, including a 180 MW site in Maysville, Georgia).
Fourth, conditions and adjustments: The transaction assumes that Northern Data's cryptocurrency mining division Peak Mining will be divested before the transaction's completion, with proceeds used to repay Tether's existing loan to Northern Data.
Fifth, financial structure: Rumble emphasizes that the transaction structure will ensure that Rumble and its subsidiaries do not bear any obligations or responsibilities for the remaining loan to Tether.
Rumble states that if the transaction is completed, it will transform into one of the global leaders in the AI field, combining Northern Data's powerful GPU resources and data centers to achieve strategic goals of data privacy and global independence.
Tether's Support
It is worth noting that Tether, the issuer of the USDT stablecoin and the largest shareholder of Northern Data, has clearly expressed support for Rumble's offer. Once the transaction is ultimately reached, Tether will exchange its Northern Data shares (approximately 54%) for Rumble Class A common shares at the same exchange ratio as other shareholders, becoming Rumble's largest single shareholder. Tether also promises to sign a long-term GPU purchase agreement with Rumble after the transaction's completion, becoming its key customer.
Additionally, Tether is actually an investor in Rumble. According to public information, at the beginning of this year, Tether invested $775 million in Rumble, purchasing 103.3 million Rumble Class A common shares (at $7.50 per share), of which $250 million was used to support Rumble's growth plans.
However, it is worth noting that Rumble emphasizes that the transaction has not yet been finalized and requires completion of confirmatory due diligence, signing of final agreements, and regulatory approvals. The transaction is expected to be completed in the second half of 2025, but uncertainties remain.
Rumble Surges 13% Pre-market
Encouraged by this news, Rumble stock RUM surged 13% before market opening, with a current market value of $2.668 billion.
Netizen Discussions
Some netizens analyze that this acquisition plan is a major move for Rumble to expand its AI business, potentially challenging the existing positions of cloud service giants like AWS and Google Cloud.
"Rumble's acquisition of Northern Data will integrate massive GPU and data centers, directly targeting the AI cloud dominance."
Others also suggest that Tether's support makes the transaction more interesting. With Rumble acquiring Northern Data and Tether being an investor in both parties, some speculate that Tether might use Rumble as an indirect listing channel, converting Northern Data shares to Rumble stock, possibly aiming to achieve asset liquidity in the US stock market. However, this speculation has not been officially confirmed.
