Rumble to Acquire Northern Data in All-Stock Deal Under $894 Million
Canaccord Genuity downgraded Northern Data to hold and cut its price target to €15, citing the Rumble merger terms, with Tether backing as a key strategic anchor.
Broker Canaccord Genuity downgraded Northern Data’s rating from buy to hold and reduced its price target from €27 to €15 following the signing of a business combination agreement with video platform Rumble. The downgrade reflects the merger’s implied exchange ratio, with conditional payments tied to commercialization milestones expected to have minimal impact on valuation. The deal, supported by stablecoin issuer Tether, includes a €150 million GPU purchase and a €100 million advertising commitment by Tether, which will serve as an anchor customer for the combined company. Scheduled to close in Q2 2026, the merger aims to expand Rumble’s cloud and data center footprint internationally. Northern Data shares rose 9.8% to €17 in German trading despite concerns over long-term growth beyond 2026.
- Tether: A stablecoin issuer whose tokens are pegged to the U.S. dollar, often used in cryptocurrency transactions.
- Business combination agreement: A formal deal outlining the terms and conditions under which two companies agree to merge or combine operations.