Movers and SHAKERS
Why the Cantor SPAC Rumble Merger is Getting So Much Attention
After a mid-year lull in SPAC activity, the last quarter of 2021 has brought a lot of attention to the sector. The most recent deSPAC buzz involves CFVI which is a Cantor Fitzgerald offering. It recently announced a proposed merger with YouTube competitor Rumble. The enthusiasm on this deal is heightened quite a bit in that Rumble is said to have a partnership with another SPAC, (DWAC), which is trading at over four times its IPO price.
Is Rumble a Unicorn?
Shares of special purpose acquisition company CF Acquisition Corp VI (CFVI) have gotten a great deal of attention today after reports it will merge with video platform Rumble. Rumble is a Canadian company headquartered in Toronto. It was founded in 2013 by Chris Pavlovski, a technology entrepreneur. For its first seven years, Rumble’s video content consisted primarily of puppies, mischievous kittens, and cute children. In August 2020, California Congressman Devin Nunes accused YouTube of having too strict a policy on censoring toward his YouTube channel and began posting his videos on Rumble. Other prominent conservatives, such as Dinesh D’Souza, Sean Hannity, and Ohio Representative Jim Jordan followed. The platform experienced significant growth in monthly users since July 2020, from 1.6 million to 31.9 million by the end of the first quarter of 2021.
The video platform Rumble, popular because it refrains from banning and shadow banning, has a partnership with Trump Media which is expected to merge with Digital World Acquisition Corp., another SPAC which has which is awaiting its merger. Trump Media owns social media website Truth Social. Some of the added enthusiasm and buzz surrounding this announced plan to merge is because the Trump social media platform quadrupled the value of the SPAC it plans to merge with. Trump Media uses Rumble for distribution on a non-exclusive basis.
The former President whose Tweets and other social media posting drew a large following has been off social media as both Facebook and Twitter closed his accounts and banned his use of their platforms earlier this year. Since his failed re-election bid, the former President has been exploring ways to be heard and to provide other voices with uncensored open communication.
The growing awareness of Rumble as an alternative to YouTube, which is synonymous with video channels, makes this an interesting SPAC merger. It has attention being paid to it from far beyond the typical investor arena.
Managing Editor, Channelchek
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