YouTube Finally Has a Serious Competitor, and the Company Just Went Public
After entering the lexicon of the average retail investor in 2020, Special Purpose Acquisition Companies, aka SPACs, have had a less-than-stellar run.
Previously a niche vehicle, SPACs exploded in popularity when the country received stimulus cheques during the pandemic. While some high-profile SPACs have failed miserably, others, such as CF Acquisition Corp (CFVI), have fared much better, successfully bringing YouTube’s first proper competitor, Rumble, public today on the NASDAQ.
The entire country, flush with cash via stimulus cheques, was the perfect breeding ground for SPAC interest. Enterprising investment bankers knew they could entice the public by starting a SPAC and announcing a planned takeover of a popular brand or emerging company. Upstart industries like crypto, cannabis and social media have been some of the more popular targets of SPACs.
It is this latest social media that is generating the most headlines. Perhaps the most famous SPAC in the world, Digital World Acquisition Corp. (NASDAQ: DWAC), has been in the news thanks to its ongoing attempts to take the parent company of Donald Trump’s social media platform (Truth Social) public. Numerous issues have hampered Digital World’s attempts to take over the Trump Media and Technology Group, the most pressing of which is the lack of shareholder approval for the merger.
Another social media company is not having the same issues with their go-public merger. YouTube alternative Rumble (NASDAQ: RUM) went public this morning under the symbol “RUM” after shareholders of SPAC CF Acquisition Corp. VI (NASDAQ: CFVI) gave their approval for the merger to move forward. YouTube and its parent company, Alphabet (NASDAQ: GOOGL), have deep pockets, so Rumble has its work cut out for it. However, RUM stock is off to a great start on its first day of trading, up over 37%.
Rumble is most well-known as a haven for creators who have been kicked off other platforms; it counts Infowars host Alex Jones and a cadre of QAnon influencers among its ranks. The company reports that it draws in 78 million unique visitors each month; for comparison, YouTube claims over 2 billion unique visitors per month. Rumble made headlines earlier this year when the company publicly offered Joe Rogan $100 million to move his hugely popular JRE Podcast from Spotify to Rumble.
On February 7, 2022, Rumble founder and CEO Chris Pavlovski posted the open letter below to his Twitter account, officially offering Rogan $100 million to switch platforms. Rogan, who is under contract with Spotify, reportedly turned down the eight-figure deal.
Hey @joerogan, we are ready to fight alongside you. See the note from our CEO @chrispavlovski… pic.twitter.com/G7ahfNNjtP
— Rumble – ????☠️ $RUM (@rumblevideo) February 7, 2022
In addition to hosting user-generated content, Rumble is engaged in producing its own shows for broadcast on the platform. Announced thus far are shows featuring actor Russell Brand and journalist Glenn Greenwald. Rumble also manages ad sales for other companies, including Truth Social.
In an SEC filing related to the merger, Rumble founder Chris Pavlovski wrote:
“Rumble is creating the rails to a new infrastructure that will not be bullied by cancel culture. We are a movement that does not stifle, censor, or punish creativity and freedom of expression.”
Shares of Rumble are currently changing hands at $16.52 per share, up 37.21% on the day.
Small Cap News Movers & Winner Deep Dive – By WealthyVC.com
We scan over 10,000 publicly listed stocks across all seven North American exchanges to uncover the market-moving news that actually matters—focusing on high-quality, liquid, growth-oriented companies in sectors attracting serious capital, like AI, blockchain, biotech, and consumer tech.
Each week, we publish Small Cap News Movers, a curated roundup of small and micro-cap stocks surging on meaningful catalysts. We break down what’s driving the move, tap into rumors swirling on social media, and surface sharp insights from both industry experts and retail sleuths.
From this list, we select one standout stock for our Small Cap Winner Deep Dive, released the next day, where we take a closer look at the fundamentals, narrative, and technicals that suggest this winner could keep running.
Powered by our proprietary 4-element, AI-driven analysis system, our goal is simple: cut through the noise, remove the emotion, and help investors dominate the small-cap market with momentum-driven strategies—completely free.
Sign up for email alerts to get the moves before our social media followers.
Read Next: Why Nvidia’s Tech Investments Could Transform the Entire AI Innovation Ecosystem
Join the Discussion in the WVC Facebook Investor Group
Do you have a stock tip or news story suggestion? Please email us at: invest@wealthyvc.com.
Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
