First we SPAC, then we take down AWS

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The plan is simple: First, we make a knockoff of a popular digital service. Second, we cry of political oppression. Third, we collect a lot of money with SPAC. And then, to end it, we take AWS.

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Understood?

The really funny thing is that I’m not kidding. It’s not only a real plan, but one that we’ve seen twice now.


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We first learned of the way capital was raised with the Trump SPAC deal, with a collection of ideas and very few products going public. And then we got another dose yesterday Online Video Hosting Portal with Rumble’s SPAC Plan, Both have long-term ambitions, or at least teasers, to take on existing cloud players.

Did you get success? That goal, about a hundred billion dollars, and 15 years could get you to quadruple status in the vicinity of the big public clouds at play.

So let’s take a look at the Rumble scheme to conquer the digital world. After all, startups are designed to make big plans. Rumble’s plot to take down the combined heist of Amazon, Microsoft and Google is, if nothing else, a small effort.

Surely *this* is peak SPAC?

Rumble, a self-described “neutral video platform”, is merging with CF Acquisition Corp VI. According to the companies, the transaction is expected to close in the second quarter of 2022. are here financial terms of the deal (slightly condensed):

The transaction is valued at Rumble at an initial enterprise value of $2.1 billion, with current Rumble shareholders having the ability to earn additional shares of the combined company if the stock reaches the $15.00 and $17.50 per share price barrier. Rumble is expected to receive approximately $400 million from the transaction, which includes fully committed PIPE at $10.00 per share and $300 million in cash held in CFVI’s trust account.

You have to wonder if Rumble is worth $2.1 billion, or when it will tie up with the blank-check company next year. After all, we don’t really know that much about it.

Crunchbase Data has a single funding event On record for the company, a May 2021 round with capital coming from Peter Thiel and JD Vance. At the time, the company was worth about $500 million, According to the Wall Street Journal, The Journal also notes that Rumble was founded in 2013, but has recently been viewed by right-wing figures as a “more welcome, free-speech alternative” to the video offerings of major platform players such as Meta and Alphabet. Promoted later gained more mainstream popularity. ,

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