Rumble, Northern Data Weigh $4.5B AI Cloud Merger
Rumble Inc., the video platform primarily known for its appeal to conservative audiences, is reportedly weighing a significant strategic maneuver: an all-stock acquisition of German data center operator Northern Data AG. This proposed deal, valued at approximately $1.17 billion for Northern Data, underscores Rumble’s ambitious push to transform itself into a formidable cloud-computing provider, a vision that could reportedly scale to a $4.5 billion AI cloud enterprise.
Under the terms currently under consideration, Rumble has put forth an offer to exchange 2.319 of its new shares for each share of Northern Data. This proposed exchange rate translates to an implied value of roughly $18.27 per Northern Data share, as detailed in separate statements released by both companies on Sunday and Monday. Notably, this valuation represents a substantial discount when compared to Northern Data’s closing share price of €23.02 (approximately $26.81) last Friday. Should the merger proceed, Northern Data’s current shareholders would collectively own about one-third of the combined entity.
This potential acquisition marks a pivotal moment for Rumble. While the company has primarily gained recognition as a platform for video content, particularly among those seeking alternatives to mainstream sites, a successful integration of Northern Data would furnish Rumble with critical infrastructure. This strategic move would empower the company to not only host its own expanding video library with greater control but also to offer robust cloud services to external clients, potentially including those operating in the burgeoning artificial intelligence sector. Such an expansion into cloud computing could significantly diversify Rumble’s revenue streams and reduce its reliance on third-party data center providers, thereby offering enhanced control over its operational costs and technical capabilities.
The contemplated merger also highlights a broader trend within the technology landscape, where content platforms are increasingly pursuing vertical integration to control their underlying infrastructure. For Rumble, owning and operating data centers could lead to increased capacity, improved latency, and a strengthened security posture—all crucial elements for a growing digital service. The reported $4.5 billion aspiration for an AI cloud enterprise underscores a bold vision that extends well beyond mere content delivery, positioning Rumble to compete in the highly capital-intensive and rapidly expanding market for AI infrastructure. However, successfully integrating a large data center operation and pivoting into a specialized cloud service provider presents considerable operational and strategic challenges, particularly for a company whose core expertise has historically been rooted in media distribution.