Tether Invests $775 Million in Rumble to Promote Decentralized Media

Tether, a prominent entity in the digital asset industry, has announced a significant investment of $775 million in Rumble, a noted video-sharing platform and cloud services provider. This move is aimed at fostering decentralized and community-owned media platforms, according to Tether.

Investment Details

The strategic investment comprises a $250 million cash injection along with support for Rumble's tender offer for up to 70 million shares at $7.50 per share. This results in Tether acquiring approximately 103,333,333 shares of common stock. Chris Pavlovski, Rumble's Chairman and CEO, will maintain a controlling stake post-transaction.

Shared Vision for Decentralization

Paolo Ardoino, Tether's CEO, emphasized that the investment reflects shared values of decentralization, independence, and transparency. He noted that the collaboration aligns with Tether's mission to empower technologies that challenge centralized systems, highlighting Rumble's commitment to free expression and innovation.

Chris Pavlovski expressed enthusiasm for the partnership, acknowledging the strong connection between cryptocurrency and free speech communities. He highlighted that the investment will bolster Rumble's growth initiatives, aiming for EBITDA breakeven by 2025, and provide liquidity for shareholders participating in the tender offer.

Transaction Specifics

• Primary Investment: Tether will acquire 103,333,333 shares of Rumble Class A Common Stock at $7.50 per share, contributing $775 million in gross proceeds.
• Tender Offer: Rumble will initiate a tender offer for up to 70 million shares, with Chris Pavlovski committing not to sell more than 10 million shares.
• Closing Conditions: The transaction is subject to customary closing conditions, including the Hart-Scott-Rodino Antitrust Improvements Act.
• Timeline: The deal is expected to finalize in the first quarter of 2025.

Advisory Roles

Cantor Fitzgerald & Co. is acting as placement agent and dealer manager, while Oppenheimer & Co. advises Rumble on capital markets. Legal counsel is provided by Willkie Farr & Gallagher LLP for Rumble and McDermott Will & Emery LLP for Tether, with DLA Piper LLP (US) advising Cantor Fitzgerald & Co.

This strategic move by Tether signifies a robust commitment to advancing decentralized media platforms, potentially reshaping the landscape of digital content sharing and consumption.