Former President Trump receives good news as the Securities and Exchange Commission (SEC) greenlights the merger between Trump Media and Technology Group, the operator of Truth Social, and Digital World Acquisition in an attempt to take his social media platform public.
With this deal, Trump will hold about 58 percent of stakes in the merger and 78 million shares, worth $4 billion based on current prices.
In a press statement, Digital World expects to hold a special meeting with its stockholders to agree on the approval of the merger in two business days.
If the deal wins approval, the parent of Truth Social, TMTG, will become a publicly traded company.
Since the DWAC announced the step forward, the shares for the company rose to 30 percent on Thursday morning, continued to trade up 20% at 52.16, and reached a session high of $56.30.
When Trump won the first primary caucus in Iowa, stocks for the TMTG and DWAC spiked up to 150 percent.
Initially, TMTG founders built Truth Social as a way for the former president to reach out to his followers as major social media platforms, barred him after the violence that occurred in the Capitol during the January 6 protest.
Trump currently has 6.61 million followers on Truth Social, while 87.4 million followers on Twitter after Elon Musk reversed the suspension imposed on Trump by the platform’s previous owner.
Since the announcement of its plan to merge in October 2021, Digital World has been hounded by witchhunts by the Department of Justice and the SEC, leading to the ousting of its CEO and board shakeup.
“We are immensely proud of the strides we’ve taken towards advancing the business combination…This achievement marks a significant milestone for us,” DWAC CEO Eric Swider said in a press release.
“This achievement marks a significant milestone for us. Our sincere thanks go to our shareholders for their unwavering support. We are excited to soon share the news of the Business Combination’s approval process with them.”
Former Republican lawmaker Devin Nunes, who is now serving as head of the TMTG, acknowledged the merger and further said that the goal of the DWAC is to “accelerate our work to build a free speech highway outside the stifling stranglehold of Big Tech.”
Several investment firms have expressed interest in buying convertible notes with the merger, including Anson Funds, All Blue Capital, and Mangrove Partner, highlighting the growing interest in the venture.
However, Digital World also raised the ongoing dispute with Patrick Orlando, former CEO and chairman of DWAC, who “presents a risk to our ability to consummate the business combination on a timely basis (or at all),” according to a filing.
