Tether Limited is set to invest $775 million in video-sharing platform Rumble as part of a strategic partnership aimed at boosting decentralization efforts, according to a Dec. 20 press release.
The news caused a sharp spike in Rumble’s stock, which surged in after-hours trading, climbing 35.89% to $9.77 despite having closed the regular session down 1.1% for the day to $7.19.
The deal is expected to close in the first quarter of 2025, pending regulatory approval.
Pavlovski to maintain control
Under the agreement, Tether will purchase 103.3 million shares of Rumble’s Class A stock. Despite the sizable investment, Rumble CEO Chris Pavlovski will maintain his super-majority voting rights, and Tether will not have board representation.
Cantor Fitzgerald & Co. and Oppenheimer & Co. are advising Rumble, with legal counsel from Willkie Farr & Gallagher LLP. Tether is represented by McDermott Will & Emery LLP.
Rumble said it plans to allocate $250 million from the deal to strengthen its balance sheet and accelerate growth initiatives.
The remaining funds will finance a tender offer for up to 70 million shares of Rumble’s Class A Common Stock, priced at $7.50 per share — the same rate as Tether’s investment. The move is expected to provide liquidity for shareholders who choose to participate in the offering.
Pavlovski highlighted the overlap between crypto and free speech communities, describing the partnership as a natural fit. He added that the investment will help the platform drive its “next growth phase.”
Tether CEO Paolo Ardoino echoed the sentiment, citing Rumble as an alternative to mainstream media platforms. He added:
“This investment reflects our shared values of decentralization and transparency. We anticipate collaborating on advertising, cloud services, and cryptocurrency payment solutions.”
Diversification efforts
The investment in Rumble is part of Tether’s broader effort to diversify beyond its core stablecoin business to better utilize its
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Author: Assad Jafri
