Rumble is a Canadian company that was formed in 2013 and operates as an online video tube. The founder of the Rumble platform is Chris Pavlovski. The company has been growing rapidly with an ever increasing monthly user count. In July 2020, Rumble had a monthly user count of 1.6 million. In the first quarter of 2021, however, the number of monthly users stood at 31.9 million. Recently, rumors have been doing the rounds regarding the future of Rumble Inc. It has now been confirmed that the company is going public via an SPAC deal. Rumble Inc is merging with a special acquisition company known as CF Acquisition Corp IV.
How Much is the Rumble SPAC Deal Worth?
The Rumble SPAC and CF Acquisition deal is estimated to be worth $2.1 billion. In this merger transaction, Rumble is expected to make about $400 million. This comprises $300 million liquid cash held by CF Acquisition and $100 million from PIPE fundraising. Pipe is short for Private Investment in public Equity. In this lucrative deal, the founder of Rumble Inc is expected to retain voting rights, which means he will have a say on the direction the company is going to take after the merger.
What Does Rumble Offer?
Rumble is an online video service that mainly offers online video hosting services. It is incredibly popular with conservatives. This is where the Trump connection comes in. The former US president loves Rumble and his followers are not any different. That is why stock prices of CF Acquisition IV increased by double digits when the partnership between Truth Social and Rumble Inc was announced.
In this partnership deal, Truth Social is going to use the Rumble video hosting service as its default platform for distribution. This means that any video that's uploaded onto Truth Social or streamed live on Truth Social will use Rumble. It's a big deal, and that explains all the excitement in the stock market.
Rumble Inc plans to take on the biggest players in the online video hosting services industry by targeting their main contributors and providing users with better opportunities for monetization. The approach is similar to what Tik Tok has done. After the capital injection made by Peter Thiel and the partnership with a company linked with Donald Trump, many conservatives are likely to embrace Rumble Inc. There are also people who are looking for something different from what mainstream online video hosting companies are offering. As stock prices continue to increase, the number of online users is also increasing rapidly. CF Acquisition shares are steadily rising and are expected to continue increasing in the future as Truth Social comes into full operation and starts taking on social networking sites that are deemed to be too liberal.
Rumble Goes Public Right After Acquiring Locals Platform, Big Corporations Can Control Free Speech