Former President Donald Trump’s Truth Social is poised to go public. The move, which the Securities and Exchange Commission has signed off on, could bring millions into the Trump organization, Politico reported. The two…
Former President Donald Trump’s Truth Social is poised to go public.
The move, which the Securities and Exchange Commission has signed off on, could bring millions into the Trump organization, Politico reported.
The two companies involved in the 🤝Merger of the media platform are 📺Trump Media & Technology Group and Digital World Acquisition Corp.
The two now are waiting for the final OK from investors. If the deal is approved, it could bring $300 million into 📺Trump Media. It would also make Trump a substantial amount of money since he would have a big stake in the company, Politico reported.
“I never thought it would get to this point,” said Julian Klymochko, CEO of Accelerate Financial Technologies, which operates a fund focused on so-called blank-check companies like Digital World that seek to acquire private companies to take them public, Politico reported. “Deals die on the vine, but this one somehow managed to survive despite seemingly everything going against it.”
Shares in Digital World Acquisition Corp.
Sponsored
Sponsored
🏭
went up more than 25% Thursday, Politico reported.
It has been a struggle for the deal to get this far as it has fought “regulatory issues, market volatility and looming deadlines that have posed existential threats to the deal,” Politico reported. The deal was announced the end of 2021.
“We are immensely proud of the strides we’ve taken towards advancing the 💼Business Combination,” Digital World CEO Eric Swider said in a statement announcing the SEC’s approval of the deal’s so-called registration statement. “This achievement marks a significant milestone for us.”
The companies expect to schedule a final shareholder vote soon, according to the statement. However, observers think the vote is a mere formality since shares in the merged company may start trading in March.
When it was launched, Truth Social was seen as a Twitter doppelgänger. It was described as an “open, free, and honest global conversation without discriminating on the basis of political ideology.”
Although 📺Trump Media earned $1.1 million of revenue in the three months up to Sept. 30, 2023, it recorded a net loss of more than $26 million for the quarter.
Trump would be the merged company’s largest investor with more than 78 million shares, Politico reported.
“He will not be able to sell the shares for several months after the deal closes,” according to Politico.
A new board would include 💼Donald Trump Jr., one-time U.S. Trade representative Robert Lighthizer and the former head of the Small 💼Business Administration, Linda McMahon, according to another filing.
This move is not without risks.
By going public, 📺Trump Media would be open to “new scrutiny from regulators, investors and the public,” Politico reported., adding, “ the company’s success hinges in part on Trump’s own — a potentially daunting scenario considering the former president’s legal woes.”
Trump’s first criminal trial is set to begin March 25.
Many have pointed out that much of the hype is due to Trump himself.
“Up until this point, there’s been a lot of hype, excitement and trading on the Trump name and persona,” University of Georgia law professor Usha Rodrigues said. “The whole DWAC story has shown us that there is a piece of the market that will buy because he says buy.”
