Trump’s Truth Social platform lost a significant amount of its justification after Elon Musk acquired Twitter, as evidenced by the falling share price of Digital World Acquisition Corp. SPAC that plans to reverse-merge the Trump Media and Technology Group (TMTG) into the stock market.
The shares of the SPAC, which act as a proxy for TMTG and its Truth Social platform in the lead-up to the merger, however, appear to have recovered their bullish vigour in light of recent reports that Trump is about to formally announce his candidacy for the 2024 US Presidential elections. Trump may formally announce his 2024 presidential campaign on November 14th, according to a report from Axios on Friday.
Well, if Trump makes a formal run for president, more people will visit the Truth Social platform to listen to his rambling and eclectic musings, which will improve the platform’s top-line metrics. Recall that the SPAC Digital World plans to reverse merge TMTG and list it on the stock market, providing the former US president’s media-focused company with much-needed funds, including $293 million in cash from the SPAC’s IPO and $861.5 million in PIPE investments.
The SEC and FINRA are currently looking into claims that the management of the SPAC broke the law by having private discussions about a merger with TMTG as early as May 2021 but failing to disclose this important information in its public filings. This has made the merger between Digital World and TMTG more difficult to complete.
The TMTG and DWAC merger may have been known to Rocket One Capital prior to the public announcement, according to reports that the SEC is also looking into. On November 22, DWAC and TMTG will once more attempt to extend the deadline for consummating the merger by a year at the next special meeting of the SPAC’s shareholders.