The IT Nerd

The Truth Social circus has taken another twist with news that the merger with Digital World Acquisition Company was approved:

Trump Media, which runs the social media platform Truth Social, is poised to become a publicly listed company, after a majority of shareholders of Digital World Acquisition Corp voted on Friday to acquire it.

Mr Trump is due to have a stake of at least 58% in the merged company, worth roughly $3bn at Digital World’s current share prices.

It’s an astonishing potential windfall for Mr Trump in exchange for a business whose own auditor warned last year it was at risk of failure.

Never mind the many red flags associated with the deal, including unresolved lawsuits from former business partners. There’s also an $18m settlement that Digital World agreed to pay last year to resolve fraud charges over how the merger plan came together.

Shares in Digital World rose on Friday ahead of the approval, to more than $45 apiece, before later sliding to below $40.

Now because of the red flags that were mentioned above, this could still become a dumpster fire. But this is a significant hurdle that has been passed for this troubled social media platform. Oh, and in case you were wondering, Donald Trump stands to eventually make billions from this. Though he needs cash right now and this might not help.

This entry was posted on March 22, 2024 at 12:38 pm and is filed under Commentary with tags Truth Social. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.