Tuesday, 24 December 2024

Rumble CEO Says Tether Wanted To "Buy As Much As Possible" 

ZeroHedge
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Update (1429ET):

Rumble CEO Chris Pavlovski spoke with Barstool's Dave Portnoy on Monday, offering more details about the $775 million strategic investment in the video platform. He noted that this is their first major strategic partnership.

Pavlovski said Tether "approached us about a month ago ... expressing they wanted to buy as much of Rumble as they could." 

"To put it simply, they are helping to clean up the capitalization table in a major way," the CEO said. 

Earlier, Tether explained in a press release the deal included purchasing 103.3 million of Rumble's Class A common at $7.50, totaling $775 million. 

Pavlovski said there will be a "primary component of about $250 million that will help spur further growth, build out the cloud, further bring in more content creators and things of that nature." 

"It's a phenomenal opportunity that we had here ... it really matches the ethos of Rumble in a major way," the CEO concluded. 

As of 1400 ET, Rumble shares in New York had surged a whopping 100%, nearing record highs. According to the latest Bloomberg data, more than 18% of the float is short, equivalent to about 15.9 million shares.

Squeeze. 

*   *   * 

Shares of YouTube competitor Rumble surged as much as 55% in premarket trading in New York after Tether, the issuer of the largest stablecoin USDT, agreed to purchase a $775 million stake in the 'free speech' video platform.

Tether purchased about 103.3 million of Rumble's Class A common at $7.50, totaling $775 million.

"The investment includes a primary commitment of $250 million in cash, with Tether also supporting Rumble's tender offer for up to 70 million shares at $7.50 per share, reinforcing the platform's future growth initiatives," Tether wrote in a press release, adding, "The total anticipated investment from Tether will be approximately $775 million or 103,333,333 shares of common stock." 

This investment between Tether and Rumble marks a partnership dedicated to promoting decentralization and safeguarding freedom of speech. 

Tether CEO Paolo Ardoino wrote in a statement: "Tether's investment in Rumble reflects our shared values of decentralization, independence, transparency, and the fundamental right to free expression." 

"In today's world, legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible, uncensored alternative. This collaboration aligns with our long-standing commitment to empowering technologies that promote freedom and challenge centralized systems, as demonstrated through our recent collaborations and initiatives," Ardoino said. 

Rumble CEO Chris Pavlovski stated: "I could not be more excited about this collaboration with Tether for many reasons. First, many people may not realize the incredibly strong connection between cryptocurrency and free speech communities, rooted in a passion for freedom, transparency, and decentralization."

Rumble shares are up 43% in premarket, trading around $10.30 a share. 

As of Friday's close, 18% of the float was short, equivalent to 15.9 million shares.

The transaction is expected to close in the first quarter of 2025. Cantor Fitzgerald & Co. acted as the transaction's placement agent and dealer manager. Oppenheimer & Co. served as the capital markets advisor to Rumble, while Willkie Farr & Gallagher LLP provided legal counsel.


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