Video-sharing platform Rumble (Nasdaq: RUM) says it has signed a strategic partnership with Tether (USDT), as part of which it will receive $775 million from the stablecoin issuer. The investment involves Tether purchasing 103.33 million shares of Rumble’s Class A common stock at $7.50 per share.
Rumble plans to use $250 million of the funds to expand its business. The rest will be allocated to a self-tender offer, allowing shareholders to sell up to 70 million shares of Class A common stock back to the company at $7.50 per share.
Rumble’s chairman and CEO, Chris Pavlovski, will keep his controlling stake in the company, even after selling up to 10 million of his shares in the tender offer. The company’s board and governance structure will remain unchanged. Tether will own only a minority stake and will not have a seat on the board.
Both companies highlight their shared commitment to decentralization, transparency, and free expression. Tether sees the investment as a way to support Rumble’s mission of providing an independent, uncensored media platform. Beyond the financial stake, Tether plans to collaborate with Rumble on advertising, cloud services, and crypto payment solutions.
The deal is expected to close in early 2025, subject to regulatory approvals, including antitrust review under the Hart-Scott-Rodino Act. Cantor Fitzgerald and Oppenheimer are among the financial advisors involved, with McDermott Will & Emery advising Tether.
Pavlovski had this to say:
“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.
“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. 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.”
Featured Image via Unsplash
Read the full article here
