Rumble secures $775m investment from Tether to fuel decentralized growth

Rumble, Inc. (NASDAQ: RUM), the video-sharing and cloud services platform championing decentralization and free speech, has announced a significant $775 million investment from Tether, the leader in stablecoin technology. This collaboration reflects a convergence of two influential players in the decentralization space, aiming to enhance free expression and financial independence through innovative technologies.

What This Investment Means for Rumble’s Growth

The strategic investment will see Tether acquire over 103 million shares of Rumble Class A Common Stock at $7.50 per share. Rumble plans to allocate $250 million from the proceeds to strengthen its balance sheet and accelerate its growth initiatives, including infrastructure expansion and service innovation. The remaining funds will facilitate a self-tender offer for up to 70 million shares of Rumble Class A Common Stock, providing liquidity to current shareholders at the same price.

CEO Chris Pavlovski underscored the alignment between cryptocurrency and free speech communities, noting both sectors’ shared values of freedom, transparency, and decentralization. He described Tether as the “perfect partner” to propel Rumble into its next phase of growth, expressing enthusiasm for the immediate financial benefits and collaborative opportunities the partnership brings.

How the Partnership Aligns Decentralization with Free Speech

Rumble and Tether’s collaboration underscores the increasing overlap between blockchain technology and independent platforms advocating for uncensored communication. Tether, the creator of the world’s most widely used stablecoin, has become synonymous with financial inclusion and decentralization. The company’s commitment to empowering underserved communities and fostering economic resilience complements Rumble’s mission to restore the internet’s free and open infrastructure.

Paolo Ardoino, CEO of Tether, remarked that the partnership aligns with Tether’s dedication to challenging centralized systems and building a more decentralized, inclusive future. He highlighted Rumble’s role as a credible alternative to legacy media, emphasizing shared goals of promoting transparency and innovation. Ardoino also pointed to potential collaborations in advertising, cloud services, and cryptocurrency payment solutions, signaling the long-term potential of this alliance.

What Shareholders Need to Know

The self-tender offer, supported by part of the investment proceeds, will allow all Rumble shareholders to tender their shares at $7.50 per share, equal to Tether’s purchase price. Rumble confirmed that certain shareholders have committed to tendering approximately 70 million shares in aggregate, with CEO Chris Pavlovski intending to tender up to 10 million shares while retaining his controlling stake.

Governance structures will remain unchanged following the transaction. Pavlovski’s super-majority voting control ensures Rumble stays firmly aligned with its original mission. Additionally, Tether’s minority ownership will not include any board representation, further maintaining the company’s operational independence.

Anticipated Timeline and Closing Conditions

The transaction, expected to close in the first quarter of 2025, is contingent upon regulatory approvals and the satisfaction of customary conditions, including compliance with the Hart-Scott-Rodino Antitrust Improvements Act.

Expert Insights on the Future of Decentralized Media

Industry observers note that this partnership comes at a critical time when consumers are increasingly seeking alternatives to traditional media and financial systems. With Tether’s backing, Rumble is poised to expand its market presence, offering an uncensored platform supported by cutting-edge technology. Experts anticipate that this investment will amplify Rumble’s ability to attract a broader audience, while Tether benefits from increased visibility in the media and technology sectors.

Advisory Teams Supporting the Transaction

The transaction is being facilitated by prominent financial and legal advisors. Cantor Fitzgerald & Co. serves as the placement agent and dealer manager for Rumble, with Oppenheimer & Co. acting as capital markets advisor. Willkie Farr & Gallagher LLP is providing legal counsel to Rumble, while Tether is represented by McDermott Will & Emery LLP.

Looking Ahead: A Decentralized Vision for the Internet

As Rumble prepares to enter its next phase of growth, this partnership with Tether represents a pivotal step toward realizing its vision of a free and open internet. By leveraging Tether’s resources and expertise in blockchain technology, Rumble aims to enhance its platform and deliver on its promise of creating a resilient, uncensored digital infrastructure.