The post Tether and Rumble Eye $1.17 Billion Northern Data Acquisition in Major AI Push appeared on BitcoinEthereumNews.com.
Video platform Rumble and stablecoin giant Tether are exploring a $1.17 billion deal to acquire German AI infrastructure company Northern Data. The all-stock transaction would transform Rumble from a YouTube alternative into a major cloud computing provider, backed by Tether’s massive financial resources. The proposed deal comes as companies race to secure AI computing power amid growing demand for artificial intelligence services. Northern Data operates thousands of powerful GPUs needed for AI training and processing, making it an attractive target for tech companies looking to compete with Amazon Web Services and Microsoft Azure. Deal Structure and Financial Terms Under the proposal, Northern Data shareholders would receive 2.319 newly issued Rumble shares for each Northern Data share they own. This would give Northern Data investors roughly 33% ownership of the combined company, while Rumble’s existing shareholders would retain control. The deal values Northern Data at about $18.27 per share, representing a 32% discount to the company’s recent Frankfurt stock price. Both companies indicated the final offer could be higher if negotiations proceed. Rumble’s stock jumped 20% in pre-market trading after the announcement, reaching $9.48 per share. The transaction remains preliminary. Rumble stressed it has not made a final decision and the deal requires board approval, due diligence, and regulatory clearance in both the United States and Germany. Tether’s Strategic Role Tether serves as the key link connecting all parties in this potential deal. The company behind the world’s largest stablecoin already owns 54% of Northern Data and invested $775 million in Rumble earlier this year. Tether also provided Northern Data with €575 million in debt financing in late 2023. The proposed acquisition assumes proceeds from selling Northern Data’s Bitcoin mining division would help repay this loan. Following the deal, Tether would become Rumble’s largest shareholder and has committed to a multi-year…
