Donald Trump says he’s “probably” going for a third presidential election. He dropped a pretty decisive hint at last week’s rally. Accordingly, shell company Digital World Acquisition Corp.’s value associated with Truth Social has increased significantly for the first time in months.DWAC values will appear instantly when the market opens on Monday about 25% increasebefore falling slightly.
Referring to his presidential run, Mr Trump said he would “very, very probably do it again”. at a rally in iowa November 3rd. Two days later, while campaigning for Dr. Oz and Doug his Mastriano in Pennsylvania, he hinted again A big announcement to come. The official declaration of the third presidential election could take place as early as November 14th. report From Axios.
But before this rapid-fire reference to the 2024 presidential run, DWAC and Truth Social it wasn’t going wellDWAC was formed last year as a publicly traded company to acquire and fund Truth and the broader Trump-related media company Trump Media & Technology Group (TMTG).Through acquisitions, media groups and social platforms will be protected From much of the transparency and reporting disclosures required to bring a company to the stock market.
However, shortly after the DWAC-TMTG merger plan was announced, SEC, Department of Justice,and federal grand jury The Southern District of New York has launched an investigation into the transaction. Each survey broadly relates to the timing of merger discussions, relative to when the acquisition was announced and when Digital Worlds went public.Under federal regulation, companies must not allowed to discuss Any such acquisition prior to an initial public offering.
An ongoing investigation put the merger on hold and Truth Social no longer has access to funds locked in DWAC. Digital World said in August that he submitted a proposal to extend the deadline for the merger agreement by one year, until September 2023. 65% of all shareholders must vote in favor to approve such an extension. However, it seems that the necessary upvotes have not been collected, and the deadline for the final vote is approaching. 6x extension It was originally set, so most recently on a Thursday. A postponed shareholder vote he has set for November 22nd. If the merger extension doesn’t work out at this point, DWAC will be liquidated on his December 8th, leaving Truth Social’s future uncertain.
G/O Media can earn commissions
Still, it’s hard to believe that Monday’s surge in stocks alone will sustain DWAC and Truth. Trump’s social media Truth has about 170 monthly unique users in the US, despite claims that his platform is superior to competitors (such as Twitter and his TikTok). No more than 10,000 people. according to Washington Post report.
And as Elon Musk’s chaotic Twitter takeover continues, Trump allowed to return His former favorite platform, further devalued Truth Social. Trump insists he doesn’t plan to keep Truth on Twitter, but his deal with TMTG specifically includes the following clauses: forgive the former president Post elsewhere.
To get that non-exclusive leeway, Trump’s family and legal representatives reportedly had to get involved, as the 76-year-old billionaire signed a blanket license with the founder of Truth Social. That said, even with the opportunity to move to greener pastures written into the official contract, Trump may feel stuck anyway.
He reportedly told a close friend that he knew he was the only one holding the site up, so he couldn’t let the truth go. He doesn’t want the brands and platforms he’s closely associated with to publicly fail, citing “people familiar with his thinking.” And DWAC’s stock price surge proves that Trump is probably right in this regard. Truth: His social values are inevitably tied to Mr. Trump’s being at the center of politics. If he runs for president again, and if he’s a mainstay in US elections for more than two years, Truth Social could survive.