TLDR: Rumble, the US video platform and cloud services provider, is reportedly considering an all-stock offer of approximately $1.17 billion for German AI cloud group Northern Data. The proposed acquisition aims to significantly expand Rumble’s AI cloud capabilities by integrating Northern Data’s GPU-heavy data center and cloud businesses. Northern Data’s majority shareholder, Tether, has expressed support for the potential transaction, which would also involve the divestiture of Northern Data’s crypto mining unit.
US-listed video platform and cloud services provider Rumble is reportedly in discussions to acquire German AI cloud group Northern Data AG, with a potential all-stock offer valued at approximately $1.17 billion (€1 billion). This strategic move is aimed at bolstering Rumble’s presence in the rapidly expanding AI infrastructure market.
The proposed deal would see Rumble integrate Northern Data’s extensive data center operations and its GPU-rich cloud business, which includes the Taiga and Ardent units. Northern Data’s Taiga cloud unit is noted for its substantial inventory of Nvidia GPU chips, including an estimated 20,480 H100s and over 2,000 H200s, which would significantly enhance Rumble’s computational capabilities for AI workloads.
Rumble is considering offering 2.319 shares for each Northern Data share. Based on Reuters calculations, this offer values Northern Data at approximately $18.3 per share, representing a discount of about 32% compared to the German company’s last closing price in Frankfurt. The total potential deal value is estimated at $1.17 billion.
Northern Data’s board has confirmed it is evaluating Rumble’s potential offer and remains open to further discussions. A key factor in the potential transaction is the expressed support from Tether, the stablecoin platform and majority shareholder of Northern Data. As part of the proposed terms, Northern Data’s Peak Mining (crypto mining) unit would be divested, with the proceeds used to reduce an existing loan extended by Tether to Northern Data.
Furthermore, Rumble has indicated that upon the consummation of the potential transaction, Tether would become a significant customer, committing to a multi-year agreement for GPU purchases. If the deal proceeds on the current terms, Northern Data shareholders would collectively own approximately 33.3% of Rumble’s shares.
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While discussions are ongoing, both companies have cautioned that there is no certainty that these preliminary talks will ultimately result in a formal offer. However, they have also suggested that any final offer, if made, is expected to be at a higher valuation. This acquisition is viewed as a pivotal step for Rumble to capitalize on the estimated $500 billion AI infrastructure market, leveraging Northern Data’s assets and Tether’s financial backing to offer transparent, anti-censorship-focused cloud solutions.
