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.

There is no doubt that former president Donald J. Trump is a real estate mogul. He is a multi billionaire with many real estate holdings around the world, key among them being the iconic Trump Tower in New York. After vacating the office of the POTUS, not much has been heard from Trump except reposting of his press releases. Recently, however, major media outlets around the world have been flooded with stories and interviews about the Trump SPAC. This is one of Trump's major successes and is bound to make him a lot of money. Read further to learn more about the company.

Trump SPAC Explained

A special acquisition company (SPAC) is a type of blank check company, more closely related to an exchange traded fund than it is to a traditional company. A blank check company contains several types of securities that can be structured to fit the investment goals of the shareholders. One of these types of securities is called an "unit". A unit can be viewed as similar to a share of stock, except that instead of giving you ownership in an actual company, it gives you limited rights to certain assets of the company. These rights are limited because they are usually restricted to receiving proceeds from certain sale transactions of the company.

The Trump SPAC was created with the intent to use the proceeds from the sale of units to buy up portions of other companies by buying large numbers of their shares on the market. The Trump SPAC will also use the proceeds from sale of units on other transactions like acquisitions or paying down debt.

Trumps new venture is a special acquisition company known as Digital World Acquisition Corp. The SPAC trades under the ticker - DWAC - on Nasdaq and other major exchanges. All the frenzy about the Trump SPAC emanates from the recent announcement of DWAC acquisition of TMTG. After the announcement the company stock grew by more than 800% in the first two days of the announcement. So far, the stock has grown by over 1,000% and has been compared to the AMC and GameStop stock by Reddit's WallStreetBets. It is interesting to note that it's not just DWAC stock that is rising fast at the moment. Phunware, a software startup massively involved in the Trump campaign also saw a rapid rise in stock prices due to the Trump effect.

How He is Backing the SPAC

Trump has gone public to dismiss major social media companies for banning him, noting that while the Taliban thrives on social media, major companies have banned him from their platforms. His goal was to acquire TRUTH social, a social media giant that can take on big tech. Going public with his statements is what attracted tech investors and his followers and convinced them to purchase this meme stock. DWAC announced that it would be acquiring the Trump Media & Technology Group popular for its Miss Universe Pageant rights.

In a press conference at the White House Rose Garden, Donald Trump stated that this issue is a matter of life and death. “You would think a company like Facebook would understand the seriousness of a threat like ISIS. The fact remains that Facebook banned me from their platform.”

“I have been calling for a major investigation into these companies that have been silencing so many voices,” Trump said. “They are controlling what we can and cannot see. It’s a dangerous thing when they are controlling your information.