Tether Takes $775M Stake in Video-Sharing Platform Rumble; RUM Shares Soar 41%
Rumble, a competitor to YouTube, has secured a $775 million strategic investment from Tether, the issuer of the USDT stablecoin. Of this amount, Rumble plans to allocate $250 million towards operations and use the remainder for a tender offer to buy back up to 70 million shares at $7.50 each.
Rumble's CEO, Chris Pavlovski, expressed confidence that Tether's involvement will significantly boost Rumble's growth. Tether's CEO, Paolo Ardoino, highlighted the opportunity for Rumble to provide an uncensored alternative to traditional media, stating that Tether intends to explore advertising, cloud services, and cryptocurrency payment solutions in collaboration with Rumble. Following the announcement, Rumble's stock surged 41% in after-hours trading.