Tether Supports Rumble’s $1.17B All-Stock Exchange Bid To Acquire Northern Data

• Rumble, with the strong support of Tether, signified its intention to acquire Northern Data, an AI and HPC solutions provider.
• The company offered an all-stock exchange estimated to cost around $1.17 billion.

Tether and Rumble have been unrelenting in advancing their partnership. After the world’s largest stablecoin issuer announced its $775 million backing in the video sharing platform last year, they have expanded the joint venture into a crypto wallet.

Recently, Rumble revealed that it got the backing of Tether in its planned acquisition of Northern Data AG.

What is Northern Data?

Northern Data is a publicly traded company in Germany. It specializes in artificial intelligence (AI) and high-performance computing (HPC) solutions.

ADVERTISEMENTAccording to Stock Analysis, Northern Data possesses a market cap of €1.46 billion ($1.7 billion) with an enterprise value of €2.05 billion ($2.39 billion). In December 2024, the business reported a revenue of €200.27 million ($233.24 million) with a revenue growth rate of 1,122.85%.

Terms of the Deal

The German firm has yet to approve Rumble’s proposal. Nonetheless, Chris Pavlovski, Chairman and CEO of Rumble, said he will use his majority stake in the video sharing platform to push the deal. Tether, a majority shareholder of Northern Data, also reportedly gave its nod to the acquisition.

Under the proposed terms of the agreement, Northern Data shareholders would be entitled to Class A shares of Rumble’s common stock in exchange for their shares in the AI and HPC platform. The Potential Offer would enable them to get 2.319 newly-issued Class A Rumble shares for each Northern Data share. Assuming all outstanding Northern Data shares are tendered, its investors would get around 33.3% total pro forma ownership in Rumble.

ADVERTISEMENTThe parties were mum on the specific amount involved in the proposal. Rumble only stated it would be an “all-stock exchange offer for 100% of the outstanding shares of Northern Data.” However, Cointelegraph claimed the video-sharing platform deal would equate to $1.17 billion.

What are Their Plans?

Rumble only gave tidbits of information about its plans once it consummates Northern Data’s acquisition. Based on its press release, the company expects the transaction to “create a leading force in freedom-first infrastructure supported by Rumble’s existing balance sheet.”

Rumble emphasized that the combined company would position itself at the forefront of AI innovation and leadership. Additionally, it would usher in more data privacy and independence globally.

Overall, the acquisition could strategically expand Rumble’s business into a diversified tech company with strong AI and HPC foundations. Meanwhile, Tether could indirectly deepen its influence in the tech, social media, and AI sectors via the increased weight of its stake in the newly combined company.

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