Hughes Hubbard & Reed LLP and Bennett Jones axi forex broker LLP are acting as legal advisors to CFVI. Transaction DetailsThe 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 of CFVI and Rumble. The transaction is subject to other customary closing conditions and is expected to close in the second quarter of 2022. Investors are preparing to vote on whether or not to approve CF Acquisition’s merger with the YouTube competitor Rumble. Additionally, the alternative video content platform recently added the controversial content creator and former professional kickboxer Andrew Tate.
Why CF Acquisition Corp. VI Stock Popped 29% Today
Shares of Digital World were up roughly 840% but have since come down quite a bit, although they’re still up big. Recently, the company announced that federal regulators are investigating Digital World over how it communicated with Trump Media prior to announcing the deal. Rumble places fewer limitations on what people can post than do other popular streaming platforms like Alphabet’s YouTube and is popular among conservatives. Today’s announcement is the first positive catalyst that DWAC stock has seen since its February launch. Yes, today’s performance is promising, but the fact that DWAC is far outpacing CFVI should compel investors to take a step back and examine the bigger picture.
Rumble’s mission is to restore the Internet to its roots by making it free and open once again. Cantor Fitzgerald, with over 12,000 employees, is a leading global financial services group at the forefront of financial and technological innovation and has been a proven and resilient leader for 77 years. Cantor Fitzgerald is a preeminent investment bank serving more than 5,000 institutional clients around the world, recognized for its strengths in fixed income and equity capital markets, investment banking, How to buy dogecoin stock SPAC underwriting and PIPE placements, prime brokerage, and commercial real estate on its global distribution platform.
Rumble saw a sharp spike in users from 1.6 million to 36 million in one year from Q3’20 to Q3’21, a 2,150% jump. Rumble has some promise to provide an alternative way to watch videos, but it is still a work in progress. It has a lot of improvement potential and will likely have rewards for shareholders over time. Therefore, it is important to time your exits and entries carefully.
- CF Acquisition is expected to merge with Rumble, a conservative-leaning social media platform focused on streaming video.
- However, regulatory scrutiny that could put the merger at risk has brought shares back to around $26 as of this writing.
- Today’s announcement is the first positive catalyst that DWAC stock has seen since its February launch.
- Actual events and circumstances are difficult or impossible to predict and will differ from assumptions.
- Rumble is a high-growth neutral video platform that is creating the rails and independent infrastructure designed to be immune to cancel culture.
Why Is CF Acquisition (CFVI) Stock in the Spotlight Today?
Particularly during President Trump’s administration, conservatives charged Big Tech with conspiring to silence their voices by either changing their algorithms to shadow ban them or outright booting them from their platforms. But wait for the stock to drop closer to the floor price of $10 before buying in. YouTube is a large brand and understandably, it is valuable to advertisers. However, considering the $5.28 rate, that will give the company estimated revenue of $2.79 billion, which is not too shabby for a developing company. The risk of Rumble stock falling below the redemption price looks minimal, considering its advertising and cloud opportunities. Its huge cash infusion also reduces the risk of Rumble having to dilute its stock to raise more money soon.
Shares of CF and Digital World appear to be trading with some correlation over the past week. CFVI’s stockholders and other interested persons may obtain, without charge, more detailed information regarding the directors and executive officers of CFVI in the Registration Statement. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies from CFVI’s stockholders in connection with the proposed business combination is set forth in the Registration Statement. Rumble is a high-growth neutral video platform that is creating the rails and independent infrastructure designed to be immune to cancel culture.
Why Shares of CF Acquisition Corp. VI Are Falling Today
The transaction has been unanimously approved by the board of buffettology directors of CFVI, as well as the board of directors of Rumble, and is expected to close during the second quarter of 2022, subject to the Registration Statement being declared effective by the SEC, approval by CFVI and Rumble shareholders, and other customary closing conditions. Rumble’s strategy is currently focused on continuing its explosive growth in users and user engagement, as well as building the tools that will enable future monetization of this consumption. About RumbleRumble is a high growth neutral video distribution platform. Rumble has created rails and independent infrastructure that are immune to cancel culture.
CFVI will also file other documents regarding the proposed transaction with the SEC. The transaction will provide approximately $400 million of proceeds at close,1 including $100 million of proceeds from a PIPE financing and $300 million of cash held in the trust account of CFVI. The proceeds will be used to attract new content creators to the Rumble and Locals platforms, continue to build out Rumble’s independent infrastructure, expand Rumble’s teams, begin robust marketing of the platform and services, make future acquisitions, and for other general corporate purposes. The proposed transactions will be submitted to CFVI’s stockholders for their consideration and approval at a special meeting of stockholders. After the Registration Statement has been declared effective, CFVI will mail a definitive proxy statement / prospectus and other relevant documents to its stockholders as of the record date established for voting on the proposed transactions. The transaction provides Rumble with approximately $400 million in gross proceeds, including approximately $85 million of proceeds from a PIPE financing, $15 million from a Forward Purchase Investment, and approximately $300 million of cash held in a trust account.
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool owns and recommends Alphabet (A shares) and Alphabet (C shares). As it nears its merger date, several near-term catalysts will pop the price; most notably, the day that shares start trading.
CFVI’s stockholders and other interested persons may obtain, without charge, more detailed information regarding the directors and executive officers of CFVI in the registration statement. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies from CFVI’s stockholders in connection with the proposed business combination is set forth in the registration statement. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended (the «Securities Act»). No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.
4 Calculated following the closing of the Transaction for any 20 out of 30 trading days during the 5-year period post-closing. Results in an aggregate valuation of up to approximately $3.15 billion if the additional shares are earned in full. 3 With potential to increase up to an enterprise value of $3.15 billion if stock price targets of the combined company are satisfied following closing. VI CFVI is a blank check company led by Chairman and Chief Executive Officer Howard W. Lutnick and sponsored by Cantor Fitzgerald. The deal between CF Acquisition and Rumble values Rumble at a $2.2 billion enterprise value.
