According to a December 20 press release, Tether Limited will invest $775 million in video-sharing platform Rumble as part of a strategic partnership to advance decentralization efforts.
The news sparked a sharp rise in Rumble shares, which rose sharply in after-hours trading, climbing 35.89% to $9.77, despite ending the day’s regular trading session down 1.1% Finished at $7.19.
The transaction is expected to close in the first quarter of 2025, subject to regulatory approval.
Pavlovski should remain in control
As part of the agreement, Tether will acquire 103.3 million Class A shares of Rumble. Despite the significant investment, Rumble CEO Chris Pavlovski will retain his supermajority voting rights and Tether will have no representation on the board.
Cantor Fitzgerald & Co. and Oppenheimer & Co. are advising Rumble, and legal advisors are 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 fund a tender offer for up to 70 million shares of Rumble’s Class A common stock at $7.50 per share – the same rate as Tether’s investment. This move is expected to provide liquidity to shareholders who elect 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 phase of growth.”
Tether CEO Paolo Ardoino echoed this sentiment, calling Rumble an alternative to mainstream media platforms. He added:
“The…
