Trump SPAC Merger Nears—Would Take Company Public—As Stock Up 200% This Year
ForbesFeb 02
Trump's Truth Social to Go Public in Merger
Image copyright: Alon Skuy/Stringer/Getty Images News via Getty Images
The Facts
Former Pres. Donald Trump’s social media company Truth Social is set to go public after shareholders of Digital World Acquisition Corp. (DWAC) — a special purpose acquisition company — approved a merger with Trump Media & Technology Group, which owns Truth.
The deal could be a major financial boon for Trump, who is set to own a majority of the newly merged company with nearly 79M shares. At DWAC’s closing price of $42.81 on Thursday, Trump could gain over $3B from the acquisition.
The Spin
Pro-Trump narrative
Pres. Trump is the ultimate businessman and one of the most resourceful people in the world, and his merger deal for Truth Social is a massive counterpunch against Letitia James’ illegitimate efforts to seize his assets. Trump is set to make billions of dollars, and he will have all the resources he needs to fight back against malicious Democrats and radical left who are desperate to take him down. Trump's millions of devoted supporters are behind him and will only fuel his businesses' growth.
Anti-Trump narrative
Headlines may make it seem like Trump is set to become $3B richer overnight, but the facts are less kind to the embattled politician who will struggle to pay his $464M bond. Even if pro-Trump sympathizers on the Trump Media board allow him to sell his shares, he won't be able to post $464M that he owes New York, and Letitia James won't let him off the hook. Regardless, Truth Social has been an utter failure that's been bleeding money, and just like Trump's other failed businesses, his media experiment will fall flat on its face.