Rumble weighs near $1.2 billion bid for German AI cloud firm Northern Data
Rumble said on Sunday that a deal would give it control of Northern Data's GPU-rich cloud business, Taiga, and its large-scale data center arm, Ardent, with plans to integrate both into its own operations.
The Taiga cloud unit holds a significant inventory of Nvidia GPU chips, including around 20,480 H100s and over 2,000 H200s.
Northern Data said on Monday that its board is evaluating Rumble's potential offer and is open for further discussions.
Rumble is considering offering 2.319 shares for each Northern Data share, both companies said.
The proposed offer values Northern Data at about $18.3 per share, based on Reuters calculations, and represents a discount of about 32% to the German company's last closing price in Frankfurt.
Reuters calculated the potential total deal value at approximately $1.17 billion.
A deal on the current terms would result in Northern Data shareholders owning about 33.3% of Rumble's shares.
Both companies said that a final offer, if made, is expected to be at a higher valuation.
Stablecoin platform Tether, the majority shareholder of Northern Data, has expressed support for the transaction, according to the statements.
A potential offer assumes that Northern Data's crypto mining unit will be divested prior to the completion of the deal, with proceeds from the sale used to reduce the existing loan extended by Tether to Northern Data.
"Following consummation of the potential transaction, Tether would become an important customer of Rumble, with a multi-year commitment to purchase GPUs," Rumble said.
However, the companies said there is no certainty that the discussions will ultimately result in a formal offer for the German group.
(1 euro = $1.1664)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
18 minutes ago
- Reuters
Renk's revenue rises more than expected in Q2
Aug 13 (Reuters) - German tank gearbox maker Renk ( opens new tab reported better than expected second-quarter revenue on Wednesday as European countries kept their defence investments steady. The company, which makes gearboxes for the Leopard 2 tanks sent to Ukraine, reported sales of 348 million euros ($406 million), better than the 338 million euros expected in an LSEG poll of analysts. In its vehicle mobility solutions (VMS) branch, which in 2024 contributed to roughly two thirds of the company's sales, reported quarterly revenue of 217 million euros, an increase of 35.3% year-on-year. Renk said its order backlog had reached 5.9 billion euros at the end of the quarter, as it confirmed its 2025 guidance. ($1 = 0.8563 euros)
Reuters
20 minutes ago
- Reuters
Brenntag confirms 2025 core profit guidance it cut in July
Aug 13 (Reuters) - German chemicals distributor Brenntag ( opens new tab on Wednesday confirmed the annual core profit guidance it had lowered in July due to economic uncertainty and global tariff discussions. The group expects operating earnings before interest, taxes and amortisation (EBITA) of 950 million to 1.05 billion euros ($1.11 billion to $1.23 billion) in 2025, compared to 1.1 billion euros a year earlier. ($1 = 0.8559 euros)
Reuters
20 minutes ago
- Reuters
Poland's PKO BP posts 13% profit rise for second quarter
GDANSK, Aug 13 (Reuters) - Poland's biggest bank PKO BP ( opens new tab reported a 13.2% year-on-year rise in its second-quarter profit on Wednesday, driven by a higher net interest income. The largest Polish bank by total assets posted a net profit of 2.66 billion zlotys ($730.7 million) for the quarter, beating market expectations of 2.55 billion zlotys, according to consensus data it had compiled. Its quarterly net interest income grew 21.7% year-on-year to 6.15 billion zlotys, while net fee and commission income fell 0.2% to 1.28 billion zlotys. Net interest margin was at 4.91% in the second quarter compared to 4.95% in the first. The bank said the decline reflected lower interest rates, but was fully compensated by strong volume growth. Poland's Central Bank cut the main interest rate by 25 basis points to 5% in July, citing its expectation for a clear decline in inflation in the coming months and surprising markets which had expected the cost of credit to remain unchanged. While the bank's governor Adam Glapinski said that the cut was not the start of a broader easing cycle, he left the door open to another cut in September. Return on equity (ROE) ratio, a measure of profitability, reached 19.4% at the end of June. Under its strategy until 2027, the bank targets a ROE above 18%. ($1 = 3.6403 zlotys)
