KEY TAKEAWAYS
- Tether invests $775 million in Rumble to enhance decentralized media platforms.
- The investment includes a $250 million cash commitment and aims to support Rumble’s growth.
- Tether and Rumble share values of decentralization and free expression, planning future collaborations in advertising and crypto solutions.
- Rumble’s CEO highlights the financial benefits and strategic partnership with Tether for future growth.
Tether, a leading company in the digital asset industry, has announced a strategic investment of $775 million in Rumble, a prominent video-sharing platform and cloud services provider. This investment, detailed here, includes a primary commitment of $250 million in cash. Tether will also support Rumble’s tender offer for up to 70 million shares at $7.50 per share, aiming to bolster the platform’s growth initiatives.
The total anticipated investment from Tether will amount to approximately $775 million, translating to 103,333,333 shares of common stock. Despite this significant investment, Chris Pavlovski, Rumble’s Chairman and CEO, will maintain a controlling stake in the company.
Shared Values and Future Collaborations
Paolo Ardoino, CEO of Tether, emphasized the alignment of values between Tether and Rumble, highlighting their mutual commitment to decentralization, independence, transparency, and free expression. Ardoino noted that the investment reflects Tether’s dedication to supporting technologies that promote freedom and challenge centralized systems.
He stated, “Rumble’s dedication to fostering open communication and innovation makes them an ideal ally as we continue building the infrastructure for a more decentralized, inclusive future.” Beyond the initial shareholder stake, Tether plans to explore opportunities in advertising, cloud, and crypto payment solutions with Rumble.
Rumble’s Growth and Strategic Benefits
Chris Pavlovski expressed enthusiasm about the collaboration, citing the strong connection between cryptocurrency and free speech communities. He highlighted the immediate financial benefits, including the $250 million cash infusion, which will support Rumble’s growth initiatives as it aims for EBITDA breakeven by 2025.
Pavlovski also mentioned that the transaction offers an immediate liquidity event for current shareholders participating in the tender offer. He described Tether as the “perfect partner” to propel Rumble into its next growth phase.
Cantor Fitzgerald & Co. is acting as the placement agent and dealer manager for the transaction. Oppenheimer & Co. is serving as the capital markets advisor to Rumble, with Willkie Farr & Gallagher LLP providing legal counsel. McDermott Will & Emery LLP is serving as legal counsel to Tether, and DLA Piper LLP (US) is advising Cantor Fitzgerald & Co.
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