Trump social media startup wins more time to go public
At stake for Trump Media is at least $300 million that’s set to be injected into the company, which operates Trump’s social media platform Truth Social.
Investors on Tuesday granted a last-minute lifeline to the company looking to take former President Donald Trump’s social media venture public, handing executives another year to finish the transaction ahead of a do-or-die deadline this week.
More than 65 percent of shareholders in Digital World Acquisition Corp. — a so-called special purpose acquisition company — signed off on giving it until next September to complete its beleaguered merger with Trump Media & Technology Group and list the combined firm on Nasdaq.
If the extension had not been granted by Friday, Digital World — and the deal itself — would have effectively died. At stake for Trump Media is at least $300 million that’s set to be injected into the company, which operates Trump’s social media platform Truth Social.
Spokespeople for Digital World and Trump Media did not immediately respond to requests for comment.
Since being unveiled in October 2021, the Digital World and Trump Media deal has been hit with a flood of questions from investors, lawmakers and regulators.
The companies recently reaffirmed their commitments to the transaction, after Digital World settled charges from the Securities and Exchange Commission alleging that the company misled investors about its negotiations with Trump Media. Digital World and Trump Media at the time also rolled out a series of changes to the structure of the combined entity, including a move that will further cement Trump’s control over it by giving the former president 55 percent of voting power in the stock.
Truth Social has become Trump’s favorite place to post online since being kicked off X, the company formerly known as Twitter, in the wake of the Jan. 6, 2021, attack on the Capitol. Trump was reinstated on X last year, but has since only posted once with a photo of his mugshot on Aug. 24.
While the extension vote stood as one of the biggest remaining obstacles, Digital World and Trump Media still have more to do before their merger can close. Digital World, for instance, must file amended regulatory filings before Oct. 9. If the company does not, Trump Media can walk away.
“Thank you for all of the outstanding support,” Digital World CEO Eric Swider posted on Truth Social after the vote was announced Tuesday. “Please understand my silence. We remain focused on the task at hand and are watching every word we say.”