The U.S. government has given Donald Trump‘s social media company, Truth Social, the go-ahead to go public by joining with a company called Digital World Acquisition Corp.
In the big picture, this is a huge step forward for the troubled deal, but it comes the day after a huge step backward.
The company DWAC said that the U.S. Securities and Exchange Commission approved its registration statement and will soon announce a date for shareholders to vote.
The news caused shares to rise almost 15%, giving DWAC a market value of about $1.86 billion.
Trump Media’s merger with DWAC means Donald Trump’s stake could be worth $4 billion.
Note: DWAC said earlier this week that Patrick Orlando, a former CEO and current director, has “expressed a desire for additional compensation… which we believe presents a risk to our ability to consummate the [Truth Social merger] on a timely basis (or at all”).
Orlando controls 14.8% of DWAC’s founder shares and has a stake in the company’s other shares. He might be able to ruin the deal if he were to be against the merger or even change it.
FAQs
A special purpose acquisition company (SPAC) raised money through an IPO to merge with another company. In this case, that company is Truth Social merging with Digital World Acquisition Corp; NASDAQ: DWAC
A former CEO and current director of DWAC, holding a significant stake in the company.
