• Tether invests $775M to help Rumble expand and challenge YouTube.
• Rumble will repurchase 70M shares to provide liquidity for stockholders.
• Tether and Rumble plan collaboration on crypto payments and cloud services.

Rumble has entered a strategic partnership with Tether, securing $775 million to fuel its growth and challenge YouTube’s dominance. The funding will support Rumble’s operations, share repurchases, and collaboration on innovative crypto solutions and cloud services, positioning it as a leader in decentralized media.

Tether Invests $775M in Video Platform Rumble for Growth

Tether has announced a $775 million investment in Rumble, a prominent video-sharing platform. This includes an initial $250 million to drive growth and operations, with the full transaction set to conclude in the first quarter of 2025. The move underscores Tether’s dedication to bolstering Rumble’s position as a major competitor to YouTube.

Rumble’s shares surged by 41% in after-hours trading following the announcement. Meanwhile, Tether continues its strong growth trajectory, projecting $10 billion in profits for 2024. Rumble’s leadership expressed confidence that the partnership will drive significant market expansion.

However, the deal will be finalized after regulatory approval such as an antitrust review under the Hart-Scott-Rodino Act. The companies have appointed financial advisors, Cantor Fitzgerald and Oppenheimer, to facilitate the process. 

Rumble will use funds to buy back up to 70M shares of stock.

Rumble will use a portion of the $775 million to conduct a self-tender offer. The offer will allow shareholders to sell up to 70 million shares of Class A common stock at a price of $7.50 per share.The deal involves purchasing 103.33 million shares of Rumble’s common stock at $7.50 each which grants Tether a minority stake in the company.

This self-tender offer will provide liquidity to Rumble’s stockholders who wish to participate. Rumble’s CEO, Chris Pavlovski, will retain control of the company despite the offer which will ensure the leadership and strategy are not disrupted. Therefore, Tether will not gain any board seats from this agreement.

Tether aims to collaborate on crypto payment and cloud solutions.

Tether and Rumble plan to collaborate on crypto payment solutions. Tether intends to integrate its blockchain technology with Rumble to enhance the platform’s capabilities and user experience. Tether is also preparing to launch an artificial intelligence platform in early 2025 which marks a step in its wider expansion efforts.

Additionally, Tether will work with Rumble ro expand cloud services and advertising solutions. The two companies are focused to enhance decentralization, innovation, transparency and free speech in the media landscape. This partnership enables Rumble to benefit from Tether’s financial strength and technological resources as well as challenge traditional media platforms.