Tether has made a bold investment of $775 million in Rumble, a video-sharing platform and cloud service provider. Rumble is YouTube’s closest competitor and is known for its uncensored content.
Rumble will use $250 million of the funds to support operations and the rest to fund a tender offer for up to 70 million shares of its common stock at $7.50 per share, according to a news release Friday evening. $7.50 is the same price per share that Tether is paying for its stake.
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He added that their company believes in the core values of freedom of expression and financial freedom.
YouTube censors content that violates its policies, and some people claim that it relies on politics to censure voices that oppose certain narratives, thereby limiting freedom of expression. So, in an effort to promote core values, including freedom of expression and financial freedom, Tether settled on Rumble, stating that it does not censor content.
Rumble to use part of the investment to finance a self-tender
According to Rumble, the partnership will not interfere with their structure much. Chris Pavlovsky, Rumble’s chairman and CEO, will remain in charge of the company while retaining control. Tether’s investment will ensure it holds a minority position in Rumble’s outstanding common stock. The agreement means that Tether will not have the right to appoint any member of Rumble’s board of directors.
Rumble will also use a portion of the investment to fund a self-tendering offering of up to 70 million Rumble common shares. The board has also given the green light to invest up to $20 million in excess cash reserves into Bitcoin. The cryptocurrency craze has been heightened by the election of US President Donald Trump. His clear stance on cryptocurrency and ambitions to create a Bitcoin reserve are motivating investors.
In addition to the contribution arrangements, Tether hopes to implement targeted advertising and strengthen its relationship with cloud payment solutions and cryptocurrencies with Rumble.
Investing in Tether to Drive Rumble's Next Growth Step
Rumble CEO Chris Pavlovsky believes that partnering with Tether is what they need for the next phase of growth. The platform aims to outperform its competitors by offering alternative, reliable ways to share information that are not subject to censorship.
According to Google Finance, the partnership announcement sent Rumbles (RUM) stock price up 51.6% to $10.90.
The deal, which is expected to close in Q1 2025, is exciting. Rumble could break the bank and consolidate users, and Tether will benefit greatly from advertising, a win-win solution. What will be interesting to see is how Rumble fares in its competition with YouTube.