SCHEDULE 13D/A: Rumble Insider Robert Arsov Sells Over 12 Million Shares in Company Tender Offer, Reduces Stake to 3.6%

Robert Arsov, an entrepreneur and investor, significantly reduced his beneficial ownership in Rumble Inc. by selling over 12.3 million Class A Common Stock shares to the company in a self-tender offer at $7.50 per share.

Summary

• Robert Arsov, the Reporting Person, filed Amendment No. 3 to his Schedule 13D regarding his beneficial ownership in Rumble Inc.'s Class A Common Stock.
• As of February 7, 2025, Mr. Arsov beneficially owns 12,067,944 shares of Class A Common Stock, representing 3.6% of the outstanding shares.
• This beneficial ownership includes 6,953,962 shares issuable upon the exercise of options (of which 3,943,188 are subject to vesting and forfeiture) and 5,083,317 shares placed in escrow (subject to vesting and forfeiture).
• The percentage is based on 338,236,492 shares of Class A Common Stock issued and outstanding as of February 7, 2024.
• Mr. Arsov exercised options for 5,012,242 shares of Class A Common Stock.
• He immediately sold these 5,012,242 shares, along with an additional 7,337,783 shares, totaling 12,350,025 shares, to Rumble Inc. in its self-tender offer.
• The sale price for these shares was $7.50 per share.
• The Issuer's self-tender offer closed on February 11, 2025.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to a significant insider selling a large portion of their stake, which can be perceived as a lack of strong future conviction. While the company's tender offer is a positive for capital management, the insider's action is the primary focus of this 13D.

Positives

• Rumble Inc. conducted a self-tender offer, which can reduce the number of outstanding shares and potentially increase earnings per share for remaining shareholders.

Negatives

• A significant insider, Robert Arsov, reduced his stake in Rumble Inc. by selling 12,350,025 shares, which could be interpreted as a lack of conviction in the company's future prospects by a key individual.

Future Outlook

This Schedule 13D filing primarily reports a change in beneficial ownership due to a completed transaction and does not provide forward-looking statements or guidance from the company.

Industry Context

This filing reflects an insider's participation in a company-initiated share buyback program (self-tender offer), a common corporate finance activity. While the specific reasons for the insider's sale are not detailed beyond participation in the offer, such transactions can influence market perception of insider confidence within the broader technology and media industry.

Related Party Transactions

• Robert Arsov, an insider and significant beneficial owner, sold shares directly to Rumble Inc. through the company's self-tender offer, which constitutes a related party transaction.

Stakeholder Impact

• Shareholders: The company's share buyback through the tender offer could reduce the outstanding share count, potentially increasing earnings per share for remaining shareholders. However, a significant insider selling shares might raise concerns about future performance.
• Company: The tender offer reduces the company's cash reserves but also reduces the number of outstanding shares, potentially improving per-share metrics.

Key Dates

Keywords

Rumble Inc., Class A Common Stock, Schedule 13D, beneficial ownership, tender offer, insider selling, Robert Arsov, share buyback