Rumble to receive $775 million strategic investment from Tether (updated)

Rum

20/12/2024 22:22

(Adds shares in paragraph 2, background in paragraph 3, details
from the release in paragraphs 4-7)
       Dec 20 (Reuters) - Video sharing platform and cloud
services provider Rumble  RUM.O  said on Friday it has entered
into an agreement with Tether, a blockchain-enabled platform, to
receive a strategic investment of $775 million.
    Shares of the Toronto-based company were up 43.7% in trading
after the bell.
    Cryptocurrencies have soared since Donald Trump won the
presidential election. His pro-cryptocurrency stance, including
a plan to create a U.S. bitcoin strategic reserve, has stoked
the enthusiasm of crypto bulls, leading to a record rally in
bitcoin.
    Rumble said that following the completion of the
transaction, Chris Pavlovski, Rumble's chairman and CEO, will
retain his controlling stake in the company.
    While Tether will own a minority position in Rumble's
outstanding common stock, it will not have the right to
designate any members of Rumble's board.
    Rumble also said that it will use a portion of the proceeds
to fund a self-tender offer for up to 70 million of Rumble's
common stock.
    The investment and the tender offer are expected to close in
the first quarter of 2025.

 (Reporting by Rishi Kant in Bengaluru; Editing by Shreya Biswas
and Alan Barona)
 ((Rishi.Kant@thomsonreuters.com))