In an age where the topic of a free, uncensored internet is controversial, some companies have recognized a market opportunity. Earlier this season, Wall Street was rocked by the historic rise of Digital World Acquisition Corp (NASDAQ:DWAC) when former President Donald Trump announced that it would serve as the blank-check partner for his new social media venture, Truth Social. The social network is expected to launch in 2022. But by the time it does, investors will likely have another option for companies looking to provide internet users with free speech vehicles. Rumble, a Canadian company seeking to rival YouTube, has announced plans to go public by way of a SPAC (special purpose acquisition company) merger with CF Acquisition Corp. VI (NASDAQ:CFVI). News of the Rumble SPAC merger has been good for CFVI stock, which has been rising all day.
As of this writing, CFVI stock has risen by almost 17% within the first two hours of trading today. News of the Rumble SPAC merger broke yesterday after close of markets. When trading began today, CFVI immediately shot up by almost 44%. Although its come down a bit since then, the stock seems to be on its way to rising further.
What else should investors know about this new company that is seeking to cash in on the current SPAC boom and send CFVI stock soaring? Let’s take a look.
CFVI Stock: 9 Things to Know About This Upcoming Merger
- The merger is currently a “tentative agreement,” but the deal will likely close during the second quarter of 2022. Shares will list on the Nasdaq. As of now, no new trading symbol has been announced.
- Rumble’s partner, CF Acquisition Corp. VI is sponsored by financial services firm Cantor Fitzgerald. One of the company’s earlier SPAC ventures was recently touted by InvestorPlace‘s Josh Enomoto.
- Chris Pavlovski, Rumble Founder and CEO, describes it as the “next generation video platform for user generated content creators.” It is built on a type of rights management technology powered by a ranking algorithm. In addition to Rumble, Pavlosvski founded global IT company Cosmic Development after getting his start at Microsoft (NASDAQ:MSFT).
- According to the statement released by the company, Rumble was founded upon the principle that “all creators should have the opportunity to freely express themselves and reach their followers without censorship or restrictions.”
- Pavlovski has emphasized a desire to create a platform that is “immune to cancel culture.” Consequently, Rumble has become popular with conservative firebrands. The list of supporters includes Stephen Crowder, former Texas Congressman Ron Paul and controversial Florida Congressman Matt Gaetz.
- Cantor Fitzgerald Chairman and CEO Howard Lutnick has called Rumble “the most exciting social media and video distribution platform in the market today.” Additionally, he has lauded its recent growth statistics and touted it as a new market opportunity for investors and content creators.
- The Boards of Directors at both companies have unanimously approved the merger. This indicates that there are likely few hurtles standing in the way of the deal. Rumble stock holders have agreed to support the deal.
- After the deal has closed, Pavlovski will maintain voting control. This will enable him to “facilitate execution of Rumble’s neutral mission on behalf of all stakeholders.”
- While it was been reported that Rumble seeks to ban hate speech and racist dialogue, it has refused to flag “medical misinformation,” primarily regarding vaccines.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
