Rumble (NASDAQ: RUM), the video-sharing platform and cloud services provider, has announced the closure of a strategic investment of $775 million from Tether ($USDT), the largest company in the digital assets industry. Tether purchased 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.
Following the investment, Rumble will allocate $250 million of the proceeds to support growth initiatives. Additionally, the company has concluded a tender offer to purchase up to 70,000,000 shares of its Class A common stock. Upon expiration, 70,061,168 shares were validly tendered, with Rumble accepting 70,000,000 shares for purchase on a pro-rata basis, totaling $525 million, excluding fees and expenses related to the tender offer.
Rumble's existing board and governance structure, including Chris Pavlovski’s super-majority voting control, remain unchanged. The company's advisors for this transaction included Cantor Fitzgerald & Co. as the dealer manager, Oppenheimer & Co. as the capital markets advisor, and Willkie Farr & Gallagher LLP as legal counsel, among others.
Rumble aims to restore the internet to its roots by making it free and open once again, as it continues to solidify its position as a high-growth video platform and cloud services provider. As a result of these announcements, the company's shares have moved -2.5% on the market, and are now trading at a price of $12.75. For the full picture, make sure to review Rumble's 8-K report.
