Rumble’s Strategic Acquisition of Northern Data Amid Valuation Shifts
Rumble Inc. is finalizing a deal to acquire Northern Data AG at a valuation below market price, marking a strategic pivot into cloud infrastructure. The video platform, backed by Tether Holdings alongside Northern Data, will adjust the exchange ratio to approximately 2 Rumble shares per Northern Data share—down from the initially proposed 2.319. Market volatility has slashed the combined entity's projected valuation from $4.5 billion to $2.9 billion.
Tether's concession to forgive a substantial portion of Northern Data's €575 million debt underscores the deal's urgency. Legal scrutiny compounds Northern Data's challenges: European prosecutors are investigating potential misuse of tax incentives tied to GPU purchases allegedly diverted from AI projects to cryptocurrency mining. This probe triggered a stock decline and accelerated financial restructuring efforts, including last week's divestiture of mining subsidiary Peak Mining.
