Rumble stock is up 15% on Tuesday: here's why

Rumble Inc (NASDAQ: RUM) is up 15% on Tuesday after revealing interest in acquiring TikTok.

Rumble wants to acquire and operate TikTok

Last week, U.S. lawmakers pushed ByteDance to divest the short video app within six months or face a ban. According to Chris Pavlovski – the chief executive of Rumble Inc:

A day earlier, the video-sharing platform based out of Florida, U.S. launched a new cloud service that it said will uphold the “free and open internet”.

Rumble stock is up well over 100% at writing versus its year-to-date low in mid-January.

Rumble is open to serving as a cloud tech partner

Rumble will store data “safely and securely” on its newly launched cloud service “at sites inside of the United States” if ByteDance agrees to divesting its stake in TikTok.

That will help alleviate the concerns of national security, it added.

Letter that $RUM wrote to TikTok CEO Shou Zi Chew on Tuesday also confirmed that its “offer is subject to negotiation of a definitive agreement.”

The news arrives a couple weeks before the Nasdaq-listed firm is scheduled to report its financial results for the fourth quarter. Consensus is for it to lose 22 cents a share versus 6 cents per share a year ago. Wall Street currently has a “hold” rating on Rumble shares.