Cryptocurrency stablecoin venture Tether has announced that it is investing $775 million in video-sharing platform and cloud provider Rumble. Rumble has become a favorite of conservative hosts and content creators, establishing itself as a free speech alternative to its competitors.
The companies announced the deal on Friday night. Rumble will receive $250 million from the transaction and will use the remaining proceeds to fund a treasury tender offer for up to 70 million shares of its Class A common stock at a price equal to Tether's investment ($7.50 per share). ”, the companies said.
Rumble is a YouTube competitor that has hosted conservative commentators like Dan Bongino, Steven Crowder, and Andrew Tate, as well as people like journalist Glenn Greenwald and gamers Dr. Disrespect and Dana White. power slap competition.
In addition to Bongino, shareholders include a venture capital firm co-founded by incoming vice president J.D. Vance. Vance's financial disclosures also revealed that he owns between $100,000 and $250,000 worth of personal Rumble stock.
After the investment closes, Rumble Chairman and CEO Chris Pavlovsky will continue to own a majority stake in the company, but plans to sell up to 10 million shares in a tender offer, Rumble said.
Tether, on the other hand, has become one of the most prominent stablecoins in the cryptocurrency world with over 350 million users.
“We couldn't be more excited about this collaboration with Tether for a variety of reasons,” Pavlovsky said in a statement. “First, many people may not realize that there is an incredibly strong connection between cryptocurrencies and the free speech community, rooted in a passion for freedom, transparency, and decentralization. Second, we have cash on our balance sheet of 250 million. The immediate commitment of an additional $1 million not only confirms the level of support and commitment to cooperation between our companies, but also furthers our growth efforts. We will provide an immediate liquidity event to all shareholders who choose to participate in the tender offer, making Tether the perfect partner to strongly support Rumble as it prepares for its next phase of growth. I believe it with all my heart.”
“Tether’s investment in Rumble reflects our shared values of decentralization, independence, transparency and the fundamental right to freedom of expression,” said Paolo Ardoino, CEO of Tether. added. “In today's world, legacy media is increasingly discredited, creating an opportunity for platforms like Rumble to provide trusted, uncensored alternative media. As demonstrated, Rumble is committed to fostering open communication and innovation, promoting freedom and empowering technology to counter centralized systems. has become an ideal ally as we continue to build the infrastructure for a more decentralized and inclusive future.Finally, Tether has extended its meaningful partnership with Rumble beyond its initial shareholder investment. We intend to drive the relationship between advertising, cloud and crypto payment solutions.”
