Video-Sharing Platform Rumble Nabs $775M Investment From Crypto Stablecoin Venture Tether

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Posted on 12/20/2024 11:30:40 PM PST by nickcarraway

The video platform, which hosts content creators like gamer Dr. Disrespect, conservative host Dan Bongino and Dana White's Power Slap, will receive $250 million, with the remaining going to a tender offer.

The crypto stablecoin venture Tether says that it is investing $775 million in the video sharing platform and cloud provider Rumble, which has become a favorite of conservative hosts and content creators and positions itself as a free speech alternative to its competitors.

The companies announced the deal Friday evening. Rumble will receive $250 million in the deal, with the remaining proceeds “to fund a self tender offer for up to 70 million of its Class A Common Stock, at the same price ($7.50 per share) as Tether’s investment,” the companies say.

Rumble is a competitor to YouTube, playing host to people like conservative commentators like Dan Bongino, Steven Crowder and Andrew Tate, the journalist Glenn Greenwald, gamer Dr. Disrespect, and Dana White’s Power Slap competitions.

Its shareholders include Bongino, and a venture capital firm co-founded by Vice president-elect JD Vance. Vance’s financial disclosures also showed that he has a personal stake in Rumble valued at between $100,000-$250,000.

Rumble says that after the investment closes, chairman and CEO Chris Pavlovski will still hold a majority stake in the company, though he will sell as many as 10 million shares in the tender offer.

Tether, meanwhile, has become one of the most prominent stablecoins in the crypto universe, with more than 350 million users.

“I could not be more excited about this collaboration with Tether for a number of reasons,” Pavlovski said in a statement. “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.”

“Tether’s investment in Rumble reflects our shared values of decentralization, independence, transparency, and the fundamental right to free expression,” added Paolo Ardoino, CEO of Tether. “In today’s world, legacy media has increasingly eroded trust, creating an opportunity for platforms like Rumble to offer a credible, uncensored alternative. This collaboration aligns with our long-standing commitment to empowering technologies that promote freedom and challenge centralized systems, as demonstrated through our recent collaborations and initiatives. Rumble’s dedication to fostering open communication and innovation makes them an ideal ally as we continue building the infrastructure for a more decentralized, inclusive future. Lastly, beyond our initial shareholder stake, Tether intends to drive towards a meaningful advertising, cloud, and crypto payment solutions relationship with Rumble.”

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Is Ruble conservative, or neutral?

1 posted on 12/20/2024 11:30:40 PM PST by nickcarraway

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