Rumble is pressing ahead with its merger with Northern Data, a move that would significantly expand its data center footprint and offerings.
- Rumble has filed an S-4 form with the U.S. Securities and Exchange Commission regarding the deal.
- Rumble and German data center operator Northern Data announced an $767 million all-stock deal in November last year.
- Retail interest in Rumble is building, and investors see a sizable revenue opportunity as AI drives a sharp acceleration in data center demand.
Rumble, Inc. stock surged nearly 5% and trended heavily on Stocktwits on Tuesday as the video streaming and cloud company, which also hosts U.S. President Donald Trump’s Truth Social platform, proceeds with its merger with German data center company Northern Data.
The company on Tuesday said it confidentially submitted an S-4 form with the U.S. markets regulator regarding its $767 million all-stock merger – a routine filing that shows the deal is moving forward as planned. The deal was first announced in November.
Rumble Could Emerge As Key Data Center Player
Investors are upbeat about the prospects. The Northern Data deal would turn Rumble into a full-stack cloud services company, with a sizable data center footprint across the U.S. and Europe, and over 22,000 Nvidia graphics processing units (GPUs).
Moreover, as part of the deal, cryptocurrency group Tether – a major financier of both companies – has committed to a $150 million GPU leasing agreement with the combined entity.
The combination is seen as a major revenue growth opportunity for Rumble, as surging demand for data centers from companies racing to build AI models and applications continues to accelerate.
Retail Reaction
On Stocktwits, the retail sentiment for RUM shifted to ‘extremely bullish’ as of late Tuesday, from ‘bearish’ the prior day. The message volume for the ticker surged by 26% over the past day.
“A tech company trading at this level is an absolute gift,” a user said. However, some also noted the stock's rising short interest (6.7%, according to Koyfin), with one speculating it could become a meme stock.
Rumble is a video-sharing platform that lets users upload and monetize content, positioning itself as a YouTube alternative with higher creator payouts and fewer restrictions. It also provides cloud infrastructure and is expanding into AI and crypto.
RUM stock has gained about 3% since it announced the merger on Nov. 10 last year.
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