Rumble announced on Friday that it has entered into a $775 million investment deal with cryptocurrency company Tether.
Tether agreed to buy about 103.3 million shares of Rumble at a price of $7.50, for a total of $775 million.
The video platform said it expects to use $250 million to support growth initiatives. It plans to use the remaining proceeds to offer up to 70 million shares of its Class A common stock at $7.50 per share.
After the planned transaction is completed, CEO Chris Pavlovski would retain a controlling stake in the company. Pavlovski does not intend to sell more than 10 million shares in the offering, Rumble said.
The investment offer and tender are expected to close in the first quarter of 2025.
Shares of Rumble rose 41% to $10.17 in after-hours trading following the announcement.
