Rumble Inc. Advances Acquisition of Northern Data AG

According to PANews, Rumble Inc. is moving forward with plans to acquire German data center company Northern Data AG through an all-stock transaction. The valuation of Northern Data is expected to be below its current market capitalization of $894 million. Both companies are backed by stablecoin issuer Tether, and the agreement is anticipated to be announced in the coming days. This acquisition aims to position Rumble as a cloud computing service provider. The equity share for Northern Data shareholders will be lower than initially proposed. Rumble is considering reducing the share exchange ratio to approximately 2 Rumble shares for each Northern Data share, down from the 2.319 shares proposed in August. As part of the deal, Tether will relinquish most of its €575 million loan to Northern Data and may assume potential tax liabilities, as well as provide commitments for power supply. The original plan was to create a merged entity with a market value of approximately $4.5 billion, with Northern Data shareholders owning one-third of Rumble. However, due to recent declines in stock prices, the new entity's market value is projected to decrease to $2.9 billion based on current prices.