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Yahoo
11-08-2025
- Business
- Yahoo
Rumble announces intention to buy Northern Data
Rumble, a provider of video-sharing platform and cloud services, has announced its intention to acquire Northern Data, a provider of AI and high performance computing (HPC) solutions. The development follows a simultaneous announcement from Northern Data, indicating that Rumble has expressed interest in pursuing a potential exchange offer. Under the proposed terms, shareholders of Northern Data would receive newly issued Class A shares of Rumble common stock in exchange for their Northern Data shares tendered in the potential offer. Northern Data has indicated a willingness to engage in further discussions regarding this proposal. Should the transaction proceed, the merged entity aims to focus on leadership in AI while prioritising data privacy and independence on a global scale, stated Rumble. The key aspects of the potential offer suggest that each Northern Data shareholder who tenders their shares would receive 2.319 newly issued Class A Rumble shares for each Northern Data share. If all outstanding shares of Northern Data are tendered, this would result in approximately 33.3% pro forma ownership in Rumble for Northern Data shareholders. The final exchange ratio will be established after confirmatory due diligence and negotiations, and it may be adjusted based on the potential sale of Northern Data's Peak Mining unit, which could influence the exchange ratio and other balance sheet considerations. Post-transaction, Tether is projected to become the largest holder of Rumble's Class A common stock, while Chris Pavlovski, Rumble's chairman and CEO, is expected to maintain a majority of the voting power. Pavlovski has expressed his support for the potential offer and intends to vote in favour of the transaction. Rumble's proposal assumes that Northern Data's Peak Mining unit will be sold before the completion of the offer, with the proceeds aimed at reducing an existing loan from Tether to Northern Data. The remaining loan is expected to continue as an obligation of Northern Data, with Rumble seeking to structure it to avoid any liability for Rumble and its subsidiaries. If the potential offer is realised, Rumble anticipates a significant transformation into a global leader in AI cloud services. Northern Data's assets include a substantial number of Nvidia GPUs and multiple data centre sites with considerable capacity. Tether, a player in the digital assets sector and the leading dollar stablecoin, has expressed its support for the potential acquisition. In connection with the potential offer, Tether has indicated its intention to sell its entire stake in Northern Data, which represents around 54% of the company's outstanding shares, to Rumble in exchange for newly issued Class A shares. This move would significantly increase Tether's investment in Rumble. Additionally, Tether plans to become a key customer of Rumble post-transaction, committing to a multi-year GPU purchase agreement and amending the existing loan to Northern Data to provide financial flexibility for the acquired business. Guggenheim Securities is serving as the financial advisor, while Willkie Farr & Gallagher LLP is providing legal counsel to Rumble. "Rumble announces intention to buy Northern Data" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Wall Street Journal
11-08-2025
- Business
- Wall Street Journal
Rumble Mulls $1.17 Billion All-Stock Deal For Northern Data
U.S. video-sharing platform and cloud services provider Rumble RUM -2.11%decrease; red down pointing triangle is mulling an all-stock bid valued at about $1.17 billion for German AI cloud computing group Northern Data. The news sent Northern Data shares as much as 29% lower in early European trade.
