Rumble plans to spend $1.17 billion to acquire AI giant Northern Data, with major shareholder Tether giving its support, causing RUM to pump 13%.

Rumble, a video-sharing platform and cloud service provider, said it has made an offer to Northern Data AG, a German artificial intelligence and high-performance computing (HPC) solutions company, and plans to acquire all outstanding shares of Northern Data in an all-stock transaction. As an investor in both companies, stablecoin leader Tether has now nodded in favor of the deal. (Synopsis: Tether reiterates: We will return to the US market!) Targeting institutional customers, but not learning from Circle listing) (Background supplement: Tether released Q2 earnings: USDT market value hit a new high, holding $127 billion in bonds, quarterly net profit of $4.9 billion) Video sharing platform and cloud service provider Rumble (NASDAQ: RUM) announced today (11) that it has submitted an announcement to Northern Data, a German artificial intelligence (AI) and high-performance computing (HPC) solutions company AG (German Stock Exchange: NB2) has made an offer to acquire all outstanding shares of Northern Data in an all-stock transaction for 1 billion europarks (approximately US$1.17 billion). Rumble noted that the deal aims to integrate Northern Data's advanced AI infrastructure and strengthen Rumble's competitiveness in the global AI cloud services market. Details of the Acquisition Plan According to Rumble's announcement, the key terms of the potential offer to acquire (the "Offer") include: First, Swap Ratio: Each Northern Data shareholder participating in the Offer expects to exchange each Northern Data Share for 2.319 new Class A common shares of Rumble at a valuation of approximately $18.3 per share, representing a discount of approximately 32% to Northern Data's most recent closing price. Second, shareholding structure: Northern Data shareholders will hold approximately 33.3% of the combined Rumble if all Northern Data outstanding shares participate in the offer. Third, business consolidation: Rumble plans to integrate Northern Data's GPU cloud services business, Taiga, which has about 20,480 Nvidia H100 and 2,048 H200 GPUs, and Ardent, its data center business, which has nearly 850 megawatts of potential capacity, including a 180 megawatt site in Maesville, Georgia. Fourth, conditions and adjustments: The transaction assumes that Northern Data's cryptocurrency mining arm, Peak Mining, is spun off before the transaction closes, and the proceeds are used to repay Tether's existing loan to Northern Data. Fifth, Financial Structure: Rumble emphasized that the transaction structure will ensure that Rumble and its subsidiaries have no obligation or liability for Tether's remaining loans. Rumble said that if completed, the transaction will transform it into one of the global leaders in AI, combining Northern Data's powerful GPU resources and data center to achieve the strategic goals of data privacy and global independence. Tether nods in support It is worth mentioning that Tether, the issuer of the US dollar stablecoin USDT, as the largest shareholder of Northern Data, has made it clear that it supports Rumble's offer. Once the transaction is finalized, Tether will convert its Northern Data shares (approximately 54%) into Rumble Class A common stock at the same exchange rate as other shareholders, becoming Rumble's largest single shareholder. At the same time, Tether also promised to sign a long-term GPU purchase agreement with Rumble after the transaction is completed, becoming its important customer. In addition, Tether is actually an investor in Rumble. According to public information, at the beginning of this year, Tether invested $775 million in Rumble, buying 103.3 million shares of Rumble Class A common stock ($7.50 per share), of which $250 million was used to support Rumble's growth plans. However, it is worth noting that Rumble stressed that the transaction has not yet been finalized and needs to complete confirmatory due diligence, sign a definitive agreement, and obtain regulatory approval. The transaction is expected to close in the second half of 2025, but uncertainty remains. Rumble jumps 13% premarket Buoyed by the news, Rumble stock RUM jumped 13% before the U.S. market open, and is now worth $2.668 billion. Source: Google Finance netizens hot discussion Some netizens believe that this acquisition plan is a major measure for Rumble to expand its AI business, which may challenge the existing position of cloud service giants such as AWS and Google Cloud. "Rumble's acquisition of Northern Data will integrate a large number of GPUs and data centers, aiming for AI cloud supremacy." In addition, some people said that Tether's support made the transaction more interesting, Rumble wants to acquire Northern Data, and Tether is an investor in both parties, leading some people to speculate that Tether may use Rumble as its indirect listing channel, by converting Northern Data shares into Rumble shares, the purpose may be to achieve the flow of its assets in the US stock market. However, this speculation has not been officially confirmed. Related reports Tether announces gold token XAUt reserves: 7.66 tons of gold bars lie safely in Swiss vaults Tether invests in empires with 120 companies: dabbled in bitcoin mining, AI, Taiwan XREX, Juventus football club The biggest bitcoin miner dream" Tether cooperates with South American agricultural company Adecoagro to introduce renewable electricity mining (Rumble plans to spend $1.17 billion to acquire AI giant Northern Data, Major shareholder Tether nodded in support, RUM jumped 13%" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".

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