CFVI Stock Is Under Pressure as Rumble SPAC Merger Vote Approaches


  • Editor’s note: This article was updated on Sept. 13 to correct the DA Davidson price target.
  • CF Acquisition VI (CFVI) will hold a vote on its merger with Rumble on Sept. 15.
  • Rumble is a video streaming service favored by conservatives, dedicated to fighting “cancel culture.”
  • After the merger, CFVI stock will trade under the symbol RUM.
CFVI stock - CFVI Stock Is Under Pressure as Rumble SPAC Merger Vote Approaches

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CF Acquisition VI (NASDAQ:CFVI) fell 5% as the blank check company’s merger with Rumble approaches a Sept. 15 approval vote. Analysts at DA Davidson initiated coverage of CFVI stock with a buy rating and a $15 price target. The stock opened Sept. 9 near $12.

Rumble is a video streaming app publicly favored by conservatives, dedicating to ending what it calls “cancel culture.” It has announced plans to launch a series of Rumble Exclusives later this month, starting with journalist Glenn Greenwald. Once the merger is complete, the company will trade under the ticker symbol RUM.

What is Rumbling

CF Acquisition VI is an investment vehicle from Cantor Fitzgerald. CFVI investors as of July 25 may vote on the merger. The shares have generally been rising in the last month, hitting a high of $13.37 on Sept. 7. The market cap is about $465 million. The termination date on the merger was recently extended to Oct. 31.

Rumble will get $400 million when the deal closes — $300 million from a trust account and $100 million from a private investment in public equity (PIPE) account.

How well Rumble shareholders do may be related to whether Truth Social completes its merger with Digital World Acquisition (NASDAQ:DWAC). Truth Social is reportedly Rumble’s biggest customer and the biggest user of the Rumble Cloud.

After the merger, RUM will still be controlled by founder Chris Pavloski, a Canadian entrepreneur and former Microsoft (NASDAQ:MSFT) executive. Current shareholders in Rumble will own 82% of the company’s stock post-merger, with investors in CFVI owning 12%. That gives Rumble a total valuation of $2.1 billion, assuming the merger is completed.

What Happens Next for CFVI Stock

Completion of the merger would be a notable achievement for Rumble and Cantor Fitzgerald. Whether it’s a win for shareholders will be determined by Rumble’s ability to gain paying customers beyond Truth Social. Rumble said it had 44 million monthly active users in the second quarter.

At the time of publication, Dana Blankenhorn owned  shares in MSFT. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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