Business

First we do SPAC, then we take down AWS

If Donald Trump can do that, it sure is easy. To the right?

The plan is simple: First, let’s make a copy of a popular digital service. Second, we cry out for political persecution. Third, we collect a lot of money with a SPAC. And then, to top it off, let’s include AWS.

I have it?

What is actually funny is that I am not kidding. Not only is this a real plan, but one we’ve seen twice now.

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We heard about the method of raising capital for the first time the Trump SPAC deal a collection of ideas and very little product audience. And then we got another dose yesterday with the SPAC plan of the online video hosting portal Rumble. Both have long-term ambitions, or at least teasers, to take on the established cloud players.

Much luck? That goal, about a hundred billion dollars and 15 years, could get you close to the great public clouds to achieve Quaternary status.

So let’s take a look at the rumble scheme to take on the digital world. After all, startups are designed to make big plans. Rumble’s plan to take on the combined weight of Amazon, Microsoft and Google is no small endeavor.

* that * is surely SPAC top?

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

The transaction values ​​Rumble at an initial enterprise value of $ 2.1 billion, with current Rumble shareholders having the option to purchase additional shares in the combined company if the stock hurdles of $ 15.00 and 17.50 Reached US dollars per share. The transaction is expected to generate approximately $ 400 million in revenue for Rumble, including a fully committed PIPE of $ 100 million at $ 10.00 per share and $ 300 million in cash held in escrow CFVI are held.

You’re right if you’re surprised that Rumble is worth $ 2.1 billion or will be next year when it teams up with the blank check company. After all, we don’t know much about it.

Crunchbase data has a individual sponsorship event For the company, a round in May 2021 with capital from Peter Thiel and JD Vance is on record. The company was then valued at around $ 500 million. per The Wall Street Journal. The Journal also notes that Rumble was founded in 2013 but only recently gained more mainstream popularity after right-wing figures began promoting the service as “a more welcoming alternative to free language” to video offerings from major platform providers such as Meta and Alphabet.

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