The video-sharing site Rumble has obtained a substantial investment of $775 million from Tether. This deal is the evolution of a great partnership between Rumble and Tether, the latter of which has as many as 350 million users worldwide.
According to the announcement, Rumble’s utilization of $250 million will expand its growth strives. The rest of the money will be used for a company buyback of up to 70 million shares of Rumble’s Class A Common Stock at a $7.50 price, the same one at which Tether has made the investment.
Rumble’s Chairman and CEO, Chris Pavlovski, will maintain his controlling stake in the company after the transaction. He said:
This transaction provides an immediate liquidity event for all of our stockholders who elect to participate in the self tender offer. I truly believe Tether is the perfect partner that can put a rocket pack on the back of Rumble as we prepare for our next phase of growth.
Tether Chief Executive Officer Paolo Ardoino claimed that the investment represents a mutually held belief in decentralization and autonomy. Tether sees Rumble as a strong ally in a mutual fight against the erosion of trust in the mainstream media. This would also open doors for several collaborations in advertising, cloud services, and crypto payments.
Tether secures minority stake in Rumble post-transaction
One of the main outcomes of the contract is that Tether will get 103,333,333 shares of Rumble Class A Common Stock at $7.50 per share. The self-tender offer gives existing shareholders the right to sell back up to 70 million shares at the same price. Some stockholders, particularly Pavlovski, have already agreed to tender their shares.
The transaction is expected to close by the first quarter of 2025, pending regulatory approval. Despite the investment, Rumble’s governance structure will remain unchanged, with Pavlovski retaining super-majority voting control.
