Northern Data Acquired by Rumble for Over €660 Million
The US platform Rumble has acquired the German cloud provider Northern Data in a deal valued at approximately €663 million. Shareholders of Northern Data will receive 2.0281 shares of Rumble in exchange for their shares, which is a lower valuation than previously anticipated during the summer.
As of the last closing price, Northern Data was valued at around €756 million, with shares trading at €11.77 each. An additional bonus of $200 million (approximately €173 million) will be contingent upon the successful sale of Northern Data's Bitcoin mining business at a specified price, with earlier estimates suggesting a potential range of $50 to $200 million for this segment.
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"With this acquisition, Rumble aims to become a leading global provider of AI cloud services," stated company representatives.
Rumble, known for its video platform popular among conservative and right-wing influencers, also serves as the cloud service provider for Truth Social, the messaging service of former US President Donald Trump. Notable investors in Rumble include venture capitalist Peter Thiel and the cryptocurrency company Tether, which has a significant stake in both companies.
After the transaction, Northern Data shareholders will hold 30.4% of Rumble. Following the acquisition, Northern Data is expected to be delisted from the stock market.
In summary, the acquisition marks a significant shift for both companies, with Rumble expanding its footprint in the AI cloud services market and Northern Data transitioning from its original focus on Bitcoin mining to cloud infrastructure.
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