Rumble Acquires Northern Data in $766 Million All-Stock Deal

Video platform Rumble plans to acquire German AI company Northern Data for $766.86 million in an all-stock deal. Northern Data shareholders will receive newly-issued Rumble shares. The deal includes a GPU leasing agreement with Tether and tax liability support, involving the acquisition of 22,400 Nvidia GPUs.

Video platform Rumble is preparing to acquire the German artificial intelligence cloud firm Northern Data in a comprehensive all-stock transaction valued at approximately $766.86 million, according to statements issued by both companies on Monday.

Under the terms of the agreement, shareholders of Northern Data will receive 2.0281 newly-issued Rumble Class A shares for each of their shares, ultimately owning 30.4% of the merged entity. The transaction also encompasses a $150 million graphics processing unit rental contract with Tether, a significant shareholder currently holding 48% of Rumble, along with $200 million in tax liability support from Rumble.

Upon finalization of the deal, Rumble is set to acquire 22,400 Nvidia GPUs, and Northern Data plans to delist. This acquisition follows Rumble's August bid to take over Northern Data's Taiga business and its expansive data center division, Ardent, reflecting its strategic expansion goals.

(With inputs from agencies.)