U.S.-based Rumble (RUM) is making headlines with its ambitious plan to acquire Germany’s Northern Data AG (NDTAF) for a substantial $1.2 billion. This strategic move marks a significant expansion for Rumble, taking the company beyond its traditional video-sharing roots and venturing into the rapidly growing AI infrastructure market. Following this announcement, RUM stock saw a nearly 7% increase in pre-market trading, while shares of Northern Data (DE:NB2) experienced a decline of more than 20% as of the latest updates.
In addition to its acquisition plans, Rumble recently reported its Q2 2025 revenue, which reached $25.1 million, reflecting a 12% increase compared to the same period last year. However, the company faced a slight dip in monthly active users (MAUs), which decreased by 3.8% to 51 million. Rumble attributed this decline to a slowdown in news and political commentary, particularly outside the U.S. election cycle, indicating that engagement levels have fluctuated significantly with current events.
Rumble is primarily known as a video-sharing platform that hosts and distributes user-generated content. In contrast, Northern Data AG specializes in artificial intelligence (AI) and high-performance computing (HPC) infrastructure solutions. If the acquisition goes through, Rumble would gain control over Northern Data’s GPU-heavy cloud unit, Taiga, and its extensive data center business, Ardent. Rumble plans to integrate these valuable assets into its existing operations to strengthen its position in the AI market.
Taiga’s cloud unit is particularly noteworthy for its impressive inventory of Nvidia (NVDA) GPU chips, which includes around 20,480 H100s and over 2,000 H200s. The possession of such a vast quantity of these high-demand chips makes Taiga an attractive target, as GPUs are crucial for advanced AI workloads and are currently in short supply.
Under the terms of the proposed acquisition, shareholders of Northern Data would receive 2.319 new Rumble Class A shares for each share they sell. Should all shares be exchanged, Northern Data's shareholders would end up owning approximately 33.3% of the merged entity. According to reports from Reuters, this potential deal values Northern Data at around $18.3 per share, which is roughly 32% lower than its last closing price in Frankfurt. Northern Data has confirmed that its board is currently reviewing Rumble’s offer and is open to further discussions, though both companies have emphasized that there is no guarantee that these talks will culminate in a formal agreement.
As Rumble continues to explore this significant acquisition, investors may be wondering whether RUM is a good stock to buy. According to analysts on Wall Street, RUM stock holds a Moderate Buy consensus rating, with one buy and one hold assigned in the last three months. Furthermore, the average price target for Rumble stock is set at $14.50 per share, suggesting a remarkable 84% upside potential for investors considering this stock.
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