Rumble, a conservative video network backed by billionaire investor Peter Thiel, is merging today after SPAC’s $2 billion merger deal with blank check firm CF Acquisition Corp. became a public company trading on the NASDAQ Stock Exchange under the ticker symbol “RUM.” Shares in the company rose as much as 40% on the company’s first day of trading before settling at 37%.
According to the announcement, the combined company will operate as Rumble Inc. The Company also had gross proceeds of $400 million, including approximately $85 million in proceeds from a PIPE financing, $15 million in forward purchase investment and approximately $300 million in cash in an escrow account.
Rumble said it plans to use the net proceeds to acquire new content creators for the Rumble and Locals platforms, continue to grow its independent infrastructure, expand teams, begin robust commercialization of the platform and services, future acquisitions finance and for other general business purposes.
In a Sept. 13 SEC filing, the company also released some very positive data. The company’s CEO, Chris Pavlovski, said Rumble reached 78 million active users in August, a significant increase from the 44 million average users in Q2 2022.
In a statement, Rumble Founder and CEO Chris Pavlovski said: “Today marks an amazing milestone for our company and one that I have long looked forward to. This transaction allows Rumble to fund a wide range of business initiatives, including the development of our independent infrastructure, as we continue to add top developers to our platforms.
Pavlovski added, “I am very pleased to report that despite the current market conditions, we have held almost all cash in escrow with near zero redemptions from CFVI shareholders. This is truly a vote of confidence in our mission and platform, and I look forward to continuing to deliver for all of our constituents in the future.
Howard Lutnick, Chairman and CEO of Cantor Fitzgerald and CFVI, stated, “With the massive surge in user and engagement, this is an exciting time for Rumble to go public. I look forward to seeing ‘RUM’ shares trade in the market.”
Rumble is among a growing number of alternative media sites attracting new users as the political divide between liberals and conservatives deepens in the United States. Other conservative apps include Gettr, Twitter competitor Parler, and former President Trump’s Truth Social.
We reported on Rumble earlier this year after it offered podcaster Joe Rogan $100 million over four years to bring its “free speech” discussions to an uncensored platform.
Sometimes referred to as a blank check company, SPAC is a shell company that has no business but plans to go public to acquire or merge with a company that will use the proceeds from the SPAC IPOs.
SPACs account for 60 of the 90 US initial public offerings (IPOs) so far this year, according to data from SPAC analytics firm SPACAnalytics.com. The De-SPAC index, which tracks some of these companies, is down over 50% so far this year.