Rumble Stock Soars On $775 Million Investment From Tether: What To Know

Rumble Inc. RUM shares are soaring in after-hours trading Friday after the company announced it has entered into a definitive agreement for a strategic investment of $775 million from Tether. 

The Details: Tether USDT/USD has agreed to purchase 103.33 million shares of Rumble Class A Common Stock at a price per share of $7.50, totaling $775 million in gross proceeds to Rumble. 

Rumble said it will use $250 million of the proceeds to support growth initiatives and the remaining proceeds to fund a self tender offer for up to 70 million of its Class A Common Stock at $7.50 per share.

Tether's investment and the tender offer are expected to close in the first quarter of 2025. Rumble’s existing Board and governance structure will remain unchanged following the closing of the transaction.

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Chris Pavlovski, Rumble’s CEO, will retain his controlling stake in the company following the completion of the transaction. 

“I could not be more excited about this collaboration with Tether for a number of reasons. First, many people may not realize the incredibly strong connection between the cryptocurrency and free speech communities, which is rooted in a passion for freedom, transparency, and decentralization," said Pavlovski. 

"Second, the immediate commitment of adding $250 million in cash to our balance sheet not only confirms the level of support and commitment to a collaboration between our companies, it also fuels our growth initiatives. And, third, this transaction provides an immediate liquidity event for all of our stockholders who elect to participate in the self tender offer," he added. 

Paolo Ardoino, CEO of Tether, commented on the investment in Rumble. 

“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," said Ardoino.

RUM Price Action: According to Benzinga Pro data, Rumble shares are up 50.7% at $10.79 in after-hours trading Friday. 

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