Blank-check company CF Acquisition (NASDAQ:CFVI) is enjoying a pleasant day as one high-profile political endorsement lifts share prices. Kentucky Sen. Rand Paul announced today that he’s switching to a CFVI-acquired YouTube competitor, Rumble. CFVI stock is reacting well to the news, currently up around 4% on the day.
So what do you need to know about Rumble’s newfound fame?
In December, CFVI jumped nearly 25% on an agreement with video platform Rumble that would take the latter company public. This is the latest special purpose acquisition company (SPAC) merger making waves following a record-breaking year for SPACs.
With the SPAC deal expected to close in the second quarter, some see Rumble as the conservative counterpart to Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube. As such, former President Donald Trump’s social media company announced a partnership with the video platform last month. Trump Media & Technology, which is also going public via SPAC merger, reported entering into a “wide-ranging technology and cloud services agreement with Rumble.”
This political movement is clearly no new phenomenon. Logically then, Paul’s latest endorsement shouldn’t come as much of a surprise.
So what else is behind the politically charged video platform?
CFVI Stock Sees Early Promise of Rumble Acquisition
In a Washington Examiner editorial titled “My New Year’s resolution: I’m quitting YouTube,” Paul attacks what he sees as YouTube’s censorship. He contextualizes this decision as part of a greater departure from mainstream tech and social media companies.
“So today, I announce that I will begin an exodus from Big Tech. I will no longer post videos on YouTube unless it is to criticize them or announce that viewers can see my content on rumble.com. … Those of us who believe that truth comes from disputation and that the marketplace of ideas is a prerequisite for innovation should shun the close-minded censors of Big Tech and take our ideas elsewhere.”
This latest action could very well serve as retaliation for another recent event. Georgia Rep. Marjorie Taylor Greene’s personal Twitter account was permanently suspended this weekend. Twitter said the lawmaker violated its policies regarding Covid-19 misinformation.
Paul isn’t exactly the first to make this departure from YouTube, and he certainly won’t be the last. In the meantime, investors appear happy to jump on the latest conservative tech trend making waves.
On the date of publication, Shrey Dua 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.
