U.S. video platform and cloud services provider Rumble (RUM.O) is weighing a roughly $1.17 billion (1 billion euros) bid for German AI cloud firm Northern Data (NB2.DE), the companies said.
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Rumble said Sunday the deal would give it control of Northern Data’s GPU-heavy cloud unit, Taiga, and its large-scale data center business, Ardent, which it plans to integrate into its operations. Northern Data said Monday its board is reviewing the potential offer and remains open to further talks.
The proposal offers 2.319 Rumble shares for each Northern Data share, valuing the German company at about $18.3 per share roughly 32% below its last closing price in Frankfurt, according to Reuters calculations.
Reuters estimated the potential deal’s total value at about $1.17 billion.
Under the current terms, Northern Data shareholders would hold roughly 33.3% of Rumble’s shares. Both companies noted that any final offer, if made, is expected to come at a higher valuation.
Northern Data’s majority shareholder, stablecoin platform Tether, has voiced support for the deal. The proposal assumes Northern Data’s crypto mining unit will be sold before completion, with proceeds used to repay an existing loan from Tether.
Rumble said that, following the transaction, Tether would become a key customer under a multi-year agreement to purchase GPUs. Still, the companies cautioned there is no guarantee the talks will lead to a formal offer.