Rumble and Northern Data are working on signing a deal for a potential all-stock exchange offer for 100% of the outstanding shares of Northern Data.
Video-sharing platform Rumble is planning to acquire Northern Data, an Artificial Intelligence (AI)-based company.
To this end, it has informed the company of its intention, indicating a possible all-stock exchange offer for all outstanding shares of Northern Data.
Understanding Northern Data and Rumble’s Deal
Some sources have reported that Rumble plans to offer up to $1.17 billion to German AI cloud group Northern Data.
Based on the terms of the agreement, which is yet to be signed, shareholders of Northern Data will be eligible to receive newly issued Class A shares of Rumble common stock. It’s willing to give as many as 2.319 shares for each Northern Data share.
This will be in exchange for the Northern Data shares tendered in the potential all-stock exchange offer. Under this offer, Northern Data is valued at about $18.3 per share.
This represents a discount of about 32% to the German company’s last closing price in Frankfurt. This also means that Northern Data shareholders will own as much as 33.3% of Rumble’s shares.
Rumble sees this as an opportunity to be in control of Taiga, Northern Data’s GPU-rich cloud business, which holds Nvidia GPU chips, including around 20,480 H100s and over 2,000 H200s.
It could also be in charge of Northern Data’s large-scale data center arm known as Ardent. In the long run, the firm plans to integrate both platforms into its operations.
According to a Monday release from Northern Data, its Board is still considering the offer made by Rumble.
There is still room for further discussions and adjustments of the potential offer. Tether, which is a major Northern Data stakeholder, has expressed support for this transaction.
“Following consummation of the potential transaction, Tether would become an important customer of Rumble, with a multi-year commitment to purchase GPUs,” Rumble noted. All these does not guarantee that both companies will reach an agreement on the deal.
Rumble Boosts Growth With $20M Bitcoin Investment
Rumble is also interested in Bitcoin BTC $109 682 24h volatility: 0.2% Market cap: $2.19 T Vol. 24h: $50.46 B purchases, as it has shown in recent times.
In November 2024, the Florida-based company’s board of directors approved a corporate treasury diversification into Bitcoin of up to $20 million. It believes that this move will play an important role in its long-term growth prospects.
It was not until January 2025 that Rumble made its first purchase of Bitcoin. Though it did not disclose the amount of its purchase, it was rumored that it spent up to $20 million on BTC at the time.
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