Rumble Stock Soars After Video Platform Gets $775M Investment From Tether | Global News Avenue

rumble (rum) Shares of the video platform surged 60% on Monday morning after securing a $775 million investment from cryptocurrency platform operator and cryptocurrency creator Tether Stablecoin Same name.

Rumble announced that Tether purchased 103.3 million Rumble shares at a price of $7.50 per share. It noted that the deal would not change Chief Executive Officer (CEO) Chris Pavlovski is the majority owner of the company.

The company said it would use $250 million of the proceeds “to support growth initiatives, with the remainder used to fund self tender offer Purchase up to 70 million shares of Class A common stock at the same price. ”

Pavlovski called Tether “the perfect partner to provide rocket support for Rumble and help us prepare for the next phase of growth.”

Tether CEO Paolo Ardoino added that in addition to the investment, his company plans to “build a meaningful relationship with Rumble for advertising, cloud and crypto payment solutions.”

Oppenheimer said the deal “should alleviate investor liquidity concerns”

For Rumble, the deal “should alleviate investor liquidity-related concerns,” Oppenheimer wrote in a note to clients. free cash flow. It has a “perform” rating on the stock.

The transaction is expected to close in the first quarter of 2025.

After the opening, Rumble shares quickly soared 61% to $11.61, the highest level since November 2022.