Rumble receives $775M investment from Tether

By Bobby Samwell • Saturday, December 21 15:24 • Permanent Link

Rumble (NASDAQ: RUM) has announced a strategic investment of $775 million from Tether ($USDT), the largest company in the digital assets industry. This investment will result in Tether purchasing 103,333,333 shares of Rumble class A common stock at a price of $7.50 per share, providing Rumble with gross proceeds of $775 million. Rumble plans to use $250 million of the proceeds to support growth initiatives and the remaining amount to fund a self tender offer for up to 70 million shares of its class A common stock at the same price as Tether's investment.

The CEO of Rumble, Chris Pavlovski, emphasized the significance of the collaboration with Tether, highlighting the connections between the cryptocurrency and free speech communities and the immediate financial support that will fuel Rumble's growth initiatives. Following the completion of the transaction, Chris Pavlovski will retain his controlling stake in the company.

Tether's CEO, Paolo Ardoino, expressed the shared values of decentralization, independence, transparency, and the fundamental right to free expression, aligning with Rumble's dedication to fostering open communication and innovation. Tether intends to drive towards a meaningful advertising, cloud, and crypto payment solutions relationship with Rumble.

The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions. Rumble's existing board and governance structure, including Chris Pavlovski's super-majority voting control, will remain unchanged following the closing of the transaction, with Tether owning a minority position in Rumble's outstanding common stock but without the right to designate any members of the board.

Cantor Fitzgerald & Co. is acting as the placement agent and dealer manager for Rumble, while Oppenheimer & Co. is serving as the capital markets advisor. Willkie Farr & Gallagher LLP is providing legal counsel to Rumble, and McDermott Will & Emery LLP is serving as legal counsel to Tether.

This strategic investment marks a significant development for Rumble as it aims to solidify its balance sheet, accelerate growth initiatives, and provide liquidity to its stockholders. As a result of these announcements, the company's shares have moved -1.1% on the market, and are now trading at a price of $7.19. For more information, read the company's full 8-K submission here.

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