Rumble Eyes Acquisition of Northern Data Amid Financial Uncertainty

Rumble is exploring an exchange offer for Northern Data, a software company. The presentation is for informational purposes only and not a recommendation or endorsement. Investment information is general in nature and may not be appropriate for all investors. Past performance does not guarantee future success, and all investments carry risks.

Rumble, a U.S. video platform and cloud services provider, has expressed interest in acquiring German AI cloud group Northern Data through an all-stock exchange offer. The potential deal, valued at approximately $1.17 billion, would give Rumble control of Northern Data's GPU-rich cloud business, Taiga, and its large-scale data center arm, Ardent.

According to statements from both companies, Rumble is considering offering 2.319 shares for each Northern Data share, which would result in Northern Data shareholders owning around 33.3% of Rumble's shares. The proposed offer represents a discount of about 32% to Northern Data's last closing price in Frankfurt.

Northern Data's Taiga cloud unit holds a significant inventory of Nvidia GPU chips, including around 20,480 H100s and over 2,000 H200s. The integration of these assets into Rumble's operations could significantly enhance the company's AI and cloud capabilities.

Tether, the majority shareholder of Northern Data, has expressed support for the transaction. Following the potential acquisition, Tether would become an important customer of Rumble, with a multi-year commitment to purchase GPUs. However, there is no certainty that the discussions will ultimately result in a formal offer for Northern Data.

The proposed deal assumes that Northern Data's crypto mining unit will be divested prior to the completion of the transaction, with proceeds from the sale used to reduce the existing loan extended by Tether to Northern Data.

The final exchange ratio would be determined following completion of confirmatory due diligence and negotiation with Northern Data, and is subject to adjustment for the potential sale of Northern Data’s Peak Mining unit and related debt reduction.

References:

[1] https://www.reuters.com/business/rumble-weighs-near-12-billion-bid-german-ai-cloud-firm-northern-data-2025-08-11/
[2] https://seekingalpha.com/news/4482961-rumble-proposes-to-acquire-northern-data-in-all-stock-exchange-offer
[3] https://corp.rumble.com/blog/rumble-announces-intent-to-acquire-ai-company-northern-data/