As an analyst with over two decades of experience in the tech and finance industries, this partnership between Rumble and Tether strikes me as a strategic move that could potentially catapult Rumble to new heights. The $250 million infusion into Rumble’s coffers immediately bolsters their financial standing and provides fuel for growth initiatives – something every company craves.
According to a recent announcement, video-hosting service Rumble (Nasdaq: RUM) has entered into a strategic alliance with digital currency company Tether (USDT). As part of this partnership, Tether will invest approximately $775 million in Rumble by purchasing 103.33 million shares of its Class A common stock at a price of $7.50 per share.
Rumble intends to deploy $250 million towards growing their business, while the remaining funds will be utilized for a share repurchase program where shareholders can offer up to 70 million shares of Class A common stock to the company, priced at $7.50 per share.
Despite offloading as many as 10 million shares in Rumble, Chris Pavlovski, the company’s chairman and CEO, will retain his controlling interest. The company’s management structure and board composition will stay the same. Tether will own a minority share but won’t have representation on the board.
As a crypto investor, I’m thrilled about Tether’s decision to invest in Rumble, a company that values decentralization, transparency, and free expression just as I do. For Tether, this investment isn’t merely a financial move; it’s an opportunity to back Rumble’s mission of creating an independent, uncensored media platform. Furthermore, Tether is looking forward to collaborating with Rumble on various fronts, including advertising, cloud services, and crypto payment solutions. This partnership promises to be more than just an investment; it’s a step towards a future where digital freedom thrives.
The transaction is likely to be finalized around early 2025, provided it obtains necessary regulatory clearances, such as antitrust scrutiny under the Hart-Scott-Rodino Act. Cantor Fitzgerald and Oppenheimer are among the advisors involved in this process, while Tether has McDermott Will & Emery as their counsel.
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.
2nd point, committing an additional $250 million in cash to our account immediately underscores the strong backing and dedication towards our partnership. It also provides the fuel for our expansion plans.
“Thirdly, this transaction offers an instant cash-out opportunity for all our shareholders who decide to take part in the buyback offer. I strongly feel that Tether is the ideal ally, capable of giving Rumble a significant boost as we gear up for our next stage of expansion.
Read More
- VVAIFU PREDICTION. VVAIFU cryptocurrency
- General Hospital Spoilers: Will Sasha Let Robert Scorpio Into Her Life?
- Will Michelle Yeoh Appear In Avatar 3? Here’s What James Cameron Had To Say
- Tom Holland Teases a Completely Different ‘Spider-Man 4’: “The idea is crazy.”
- DC Comics Reunites Batman Creators Jeph Loeb and Jim Lee for HUSH Sequel
- DEXE PREDICTION. DEXE cryptocurrency
- David Leitch Reveals Bruce Willis Almost Played John Wick
- Why U.S. SEC Is Being Sued by Blockchain Association and How This Fight Could Impact Crypto and DeFi
- Common & Pete Rock show classic footage & their celebrity friends in ‘Dreamin’ video
- Docuseries Based On Princess Diana’s Life Announced Days Before Her 27th Death Anniversary; Details Inside
2024-12-22 10:29