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Securities and Exchange Commission (SEC) on Thursday greenlighted the merger between Donald Trump’s social media company and a special purpose acquisition company that will allow it to become a publicly traded company, according to a new report. wall street journal,
The SEC declared effective the registration statement on Form S-4 for the proposed business combination between Trump Media & Technology Group and Digital World Acquisition Corp. after a lengthy delay. The merger was first proposed in late 2021 but was hit by SEC and US Justice Department investigations. Trump will own more than 78 million shares in the newly created company, a 58.1% stake, valued at about $4 billion at just over $50 a share as of Thursday afternoon.
DWAC stock rose 30% on news of the merger approval Thursday morning, although it fell about 15% throughout the day. The stock has surged 124% since Trump won the Iowa caucuses a month ago, defeating his nearest rival, former South Carolina Gov. Nikki Haley, by double digits. While Haley has promised to remain in the race, Trump is still considered the favorite to become the Republican nominee for president this year despite multiple criminal indictments at both the state and federal levels.
The current valuation of the new company is around $7 billion at the current stock price, which is an astonishing figure for a company with relatively few active users. According to this, Truth Social has less than 1 million active users cnn, Trump’s messages on the platform are widely distributed across other networks, which, paradoxically, reduces the need for some people to join Truth Social to read Trump’s messages. After this the former President was suspended from major social media platforms like Facebook and Twitter. Events of January 6, 2021, And while both platforms have said he may return, Trump has opted to remain exclusively on Truth Social.
Truth Social’s big selling point is the fact that it happens when Trump specifically posts, but the platform’s CEO is doing his best to convince potential users that it’s the only company that cares about free speech. .
“Truth Social was created to serve as a safe harbor for free expression and give people their voices back. “Moving forward, our goal is to accelerate our work to build a free speech highway outside the tight grip of Big Tech,” Devin Nunes, CEO of Trump Media & Technology Group, said in a statement. Filed with SEC,
Nunes, a former Republican congressman from California, sued two parody accounts on Twitter that were mocking him. court Twitter dismissed from the case In June 2020.
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