YouTube’s nearest competitor, Rumble, has received $775 million in investment from Tether. Advertisements and other products will be advantageous to Tether pursuant to the agreement.
Tether has initiated a daring partnership by investing $775 million in Rumble, a cloud services provider and video-sharing platform. Rumble is renowned for its uncensored content and is the closest competitor to YouTube.
A press statement from Friday night said that Rumble would put $250 million towards operational expenses and the remaining funds towards a tender offer for up to 70 million common stock shares at a price of $7.50 per share. Tether is paying the same price per share for its stake as $7.50.
Paolo Ardonio, the CEO of Tether, commented on the investment in X. He also stated that their organization is committed to the fundamental principles of financial and speech freedom.
Some individuals contend that YouTube has been censoring content that contravenes its policy in order to silence voices that differ from specific narratives, thereby restricting freedom of speech. In order to bolster fundamental values, such as financial and speech freedom, Tether has selected Rumble, citing that they do not censor content.
According to Rumble, the partnership will not significantly disrupt their respective structures. Chris Pavlovski, the chairman and CEO of Rumble, will continue to oversee the organization as long as he maintains authority. Tether’s investment will guarantee that it maintains a minority stake in Rumble’s outstanding common stock. The agreement effectively deprives Tether of the authority to designate any Rumble board member.
Additionally, Rumble intends to allocate a portion of the investment to the financing of a self-tender offer for up to 70 million shares of its common stock. Additionally, the board of directors authorized the investment of $20 million in Bitcoin from excess cash reserves. The election of Donald Trump as the United States president has resulted in a surge in cryptocurrency speculation. His evident stance on cryptocurrency and his aspirations to establish a Bitcoin reserve are serving as incentives for investors.
Tether aspires to improve its cloud and crypto payment solutions relationship with Rumble, in addition to shareholding arrangements, by conducting meaningful advertisements.
Chris Pavlovski, the CEO of Rumble, is of the opinion that the partnership with Tether is precisely what the company requires to enter its subsequent development phase. The platform endeavours to surpass its competitors by providing alternative and credible channels for the dissemination of uncensored information.
According to Google Finance, the partnership announcement resulted in a 51.6% increase in the share price of Rumbles (RUM) to $10.90.
Expected to conclude in the first quarter of 2025, the transaction is thrilling. Rumble has the potential to surpass its ceiling and consolidate users, while Tether will derive significant benefits from advertisements—a mutually beneficial arrangement. What will be intriguing to observe is how Rumble will perform in its competition with YouTube.
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