Rumble completed its deal to go public through SPAC CF Acquisition Corp. IV on Friday. CF Acquisition was backed by investment firm Cantor Fitzgerald.
Rumble has gained much attention this year as alternative YouTube platform and after it announced a deal with former President Donald Trump's s social media company and his platform Truth Social. Trump's media company is also going public through a deal with SPAC Digital World Acquisition (DWAC).
Rumble originally announced its deal to go public through SPAC CF Acquisition Corp. VI back in December. Rumble's swift move up today is in contrast to many SPACs in the past year, whose shares have tumbled after de-SPACING.
The deal to take Rumble public was valued at about $2.1 billion when it was announced in early December. In a recent S-4 filing, Rumble and CFVI said that Rumble’s U.S. advertising business is now valued at between $7.6 billion – $9.7 billion. Rumble’s video platform has become increasingly popular with conservative content makers.
Rumble was initiated with a buy rating and $15 price target at DA Davidson earlier this month. DA Davidson analyst Tom Forte said in the initiation that he saw three catalysts for the shares over the next year including monetizing its "large" audience, adding content creators and international expansion.
"Rumble differentiates itself from social-networking platforms like Twitter and YouTube with its commitment to operating with consistent and creator-friendly standards of conduct and content restrictions to build trust within its community of creators," Forte wrote in a Sept. 8 initiation report. "It operates within its own infrastructure giving it technical independence."
Also see SA contributor Stone Fox Capital piece from last Monday entitled "Rumble: Wait For Post SPAC Discount."