Rumble Plans Acquisition of Northern Data in All-Stock Deal
Rumble (RUM) announced plans to acquire Northern Data in an all-stock deal, with Tether (USDT) involved in the merger.
- Rumble will offer 2.319 new shares for each share of Northern Data.
- Northern Data shareholders will hold about one-third of the combined entity.
- The acquisition includes integrating Northern Data’s Ardent data center and Taiga GPU-as-a-service operations, adding over 20,000 Nvidia GPUs to Rumble's infrastructure.
- Northern Data has five data centers with a total potential capacity of around 850 MW.
- Tether, owning roughly 54% of Northern Data, will exchange its shares for Rumble stock and commit to GPU purchases.
- Tether will amend its loan to Northern Data to alleviate financial strain post-merger.
- Tether is set to become the largest shareholder of Rumble's Class A common stock following previous investments.
- Rumble CEO stated the acquisition could establish the company as a leader in AI-focused cloud computing.
- Rumble reported a revenue increase despite a loss of $30.2 million in Q2.
- Rumble's stock initially rose by 20% pre-market and closed 7% higher, while Northern Data shares fell nearly 20% on European exchanges.