September 2022: After being valued at over $2 billion by a blank check firm, the conservative video network was listed on the New York Stock Exchange Monday. Shares of the company have risen as much as 40% since the first trading day.
A merger with Cantor Fitzgerald’s special purpose acquisition company, CF Acquisition Corp. VI, will result in Rumble receiving $400 million in proceeds. As US political divisions intensify, alternative media sites such as RUM are attracting new users. As well, other conservative apps have been widely downloaded, such as Parler, Gettr, and Donald Trump’s Truth Social.
Rumble is a video-sharing platform similar to Alphabet‘s (NASDAQ: GOOG (NASDAQ: GOOGL) YouTube, and though the site is apolitical, describing itself as neutral and “immune to cancel culture,” it has attracted some of the biggest names in conservative circles, both as content creators and financial backers.
Now it’s going public through a merger with the special-purpose acquisition company (SPAC) CF Acquisition Corp. VI (NASDAQ: CFVI), the Cantor Fitzgerald-backed vehicle, giving Rumble a $2.1 billion valuation.
According to data from S&P Global Market Intelligence, the announcement of the merger sent CF Acquisition soaring, and it ended December with a 10.8% gain for the month.
About The Rumble Stock
Rumble is growing and growing fast. The video-sharing site reports that it had 44 million active users in August and that viewer engagement rocketed 44 times higher over the past year, hitting 8 billion minutes watched in the third quarter.
While that pales in comparison with YouTube’s more than 315 million active users at the end of September, Rumble has only really started to gain traction within the past year, as content creators and users find its stated commitment to free speech refreshing.
It’s not just conservatives flocking to the site. For example, journalist and self-described liberal Glenn Greenwald have 158,000 subscribers to his Rumble channel, while progressive comedian Jimmy Dore has 43,000 subscribers.
Those numbers, though, are a rounding error for some of the most high-profile conservatives on the site, with commentator and Rumble investor Dan Bongino sporting more than 2 million subscribers, and Devin Nunes, the former congressman who resigned his House seat to head up President Trump’s own new social media platform, has 820,000 subscribers.
Is CFVI the stock for Rumble?
The merger between Rumble and CF Acquisition VI is expected to contribute approximately $400 million in proceeds to Rumble. This includes $100 million in a fully committed PIP+E (private investment in public equity) at $10 per share and $300 million of cash held in the trust account of CF Acquisition.
The transaction is expected to close in the second quarter of 2022.
The deal with CFVI values Rumbles at an initial enterprise value of $2.1 billion. The existing Rumble stockholders will earn additional shares of the combined entity if the stock prices reach $15 and $17.5. There’s an earnout feature in the DWAC-TMTG merger also.
The Transaction between Rumble and CFVI
The Board of Directors of each of Rumble and CFVI have unanimously approved the transaction. The transaction will require the approval of the stockholders of each CFVI and Rumble. The Rumble stockholders have agreed to support the trade. The transaction is subject to other customary closing conditions and is expected to close in the second quarter of 2022.
The transaction values Rumble at an initial enterprise value of $2.1 billion, with current Rumble shareholders having the ability to earn additional shares of the combined company if the stock reaches price hurdles of $15.00 and $17.50 per share.4 The transaction is expected to provide approximately $400 million in proceeds5 to Rumble, including a fully committed PIPE of $100 million at $10.00 per share and $300 million of cash held in the trust account of CFVI.
How to Buy Rumble Stock?
Since Rumble isn’t publicly traded yet, you can’t buy the stock directly. However, after the merger announcement, buying CFVI gives you exposure to Rumble. The argument assumes that the merger will sail through. Looking at the soaring stock price of CFVI, the merger should eventually get approval from stockholders.
You can track the CFVI Stock below
Rumble’s stock forecast is one to watch.
rumble is a fast-growing platform and had 36 million average monthly users in the third quarter of 2021. Rumble’s growth is similar to that of TikTok. The company says that it has just started to monetize its distribution. The merger presentation lacks crucial details like the current and projected financials. Even the PIPE investors aren’t currently public.
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