Rumble Inc. (RUM), the video-sharing platform and cloud services provider, witnessed a remarkable 42.84% surge in its stock price during the pre-market trading session on Monday. This substantial rally was fueled by the company's announcement of a strategic $775 million investment from the cryptocurrency firm Tether.
Under the terms of the agreement, Tether will purchase approximately 103.3 million shares of Rumble at a price of $7.50 per share. Rumble plans to allocate $250 million from the proceeds to support its growth initiatives, solidifying its position in the rapidly evolving digital landscape.
Additionally, the company intends to utilize the remaining proceeds to fund a self-tender offer, allowing Rumble to repurchase up to 70 million of its Class A common stock at the same price of $7.50 per share. This share buyback program demonstrates the company's confidence in its long-term prospects and its commitment to enhancing shareholder value.
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