Rumble, a rising star in the video sharing platform arena, has just secured a massive $775 million strategic investment from Tether, a major player in the stablecoin industry. This groundbreaking deal is set to propel Rumble to new heights and solidify its position as a serious competitor to YouTube.
According to a press release issued on Friday evening, Rumble plans to allocate $250 million of the investment towards bolstering its operations, while the remaining funds will be used to finance a tender offer for up to 70 million shares of its common stock at a price of $7.50 per share. This price matches the per share value that Tether paid for its stake in the company.
In a statement, Rumble CEO Chris Pavlovski expressed his excitement about the partnership with Tether, describing the stablecoin giant as the perfect partner to accelerate Rumble’s growth trajectory. He emphasized the need for alternative platforms like Rumble in the face of diminishing trust in legacy media.
Tether CEO Paolo Ardoino echoed Pavlovski’s sentiments, highlighting the opportunity for Rumble to provide a credible and uncensored alternative to traditional media. Beyond the financial investment, Tether aims to establish a robust relationship with Rumble encompassing advertising, cloud services, and crypto payment solutions.
Following the announcement of the investment, Rumble’s stock surged by an impressive 41% in after-hours trading, reaching $10.13 per share. It remains unclear whether Rumble plans to allocate any of the funds towards acquiring Bitcoin, although Pavlovski had previously hinted at the possibility of integrating the cryptocurrency into the company’s balance sheet.
With this substantial investment from Tether, Rumble is poised to expand its reach and offerings in the competitive video sharing landscape. The partnership signals a new chapter of growth and innovation for Rumble, as it continues to carve out its niche as a leading platform for uncensored and trustworthy content.