Contemplating Purchase of Northern Data by Tether-Supported Company, Rumble

Rumble to Acquire Northern Data in Major Move to Expand Cloud and AI Capabilities

In a significant development, Rumble, the video-sharing platform, has announced its intent to acquire Northern Data, a German data centre and AI infrastructure provider. The proposed deal, valued at approximately $1.17 billion, would see Rumble (NASDAQ: RUM) acquire Northern Data (ETR: NB2) through an all-stock exchange offer for 100% of Northern Data's shares.

The acquisition, if successful, would integrate Northern Data's businesses, Ardent and Taiga, into Rumble's operations. Ardent, with its five data centers offering nearly 850 MW of potential energized capacity, would significantly expand Rumble's cloud infrastructure. Taiga, a cloud service with a substantial number of Nvidia GPUs, including 20,480 H100s and 2,048 H200s, would bolster Rumble's AI capabilities.

The move aligns with a shared vision between Rumble and Tether, Northern Data's majority shareholder, to "democratize compute while providing unfettered access to infrastructure." Tether currently holds a 54% stake in Northern Data and a 48% stake in Rumble following a $775 million investment in December 2021. If the transaction proceeds, Northern Data shareholders would own roughly 33.3% of Rumble's shares, making Tether the single largest holder of Class A Rumble shares.

The acquisition has received the support of Northern Data's majority shareholder, Tether. Rumble is proposing an offer of 2.319 shares for each Northern Data share, representing a 32% discount to Northern Data's last closing price. The potential offer is subject to several conditions, including regulatory and due diligence processes, the sale of Northern Data's Peak Mining unit, and the repayment of a 575 million euro loan extended by Tether.

The proposed deal values Northern Data at approximately $18.3 per share. If the transaction goes forward, Tether would become an important customer of Rumble with a multi-year commitment to purchase GPUs. Tether CEO Paolo Ardoino has expressed his approval for the move in a simple tweet.

Rumble has secured early investments from U.S. Vice President JD Vance and tech billionaire Peter Thiel, among others. The acquisition, if successful, would mark a significant step forward for Rumble in its quest to become a major player in the cloud and AI sectors.

The news of the potential acquisition has sent waves through the tech industry, with many analysts viewing it as a strategic move that could potentially reshape the landscape of cloud and AI infrastructure. As the deal progresses, both Rumble and Northern Data shareholders will be closely watching developments, hoping for a successful conclusion to this major transaction.