Donald Trump’s Truth Social is set to make its Wall Street debut after the SEC cleared a controversial merger with Digital World Acquisition Corp (DWAC), a SPAC which plans to bring the company public. This could give Trump a sizable ownership stake in the company valued at around $4 billion, owning roughly 79 million shares. The merger is now only awaiting shareholder approval, which is seen as a formality.
🚨BREAKING: The SEC has approved the merger of $DWAC and Truth Social. President Trump is expected to profit almost 4 BILLION dollars given his 58% stake in the company and the current stock price.
— Pro Swing Trading 📈😎🇺🇸 (@Pro__Trading) February 16, 2024
The leftists trying to bankrupt Trump are in shambles. pic.twitter.com/3VB1xNjjAY
Shares of the special purpose acquisition company (SPAC) — a blank-check firm formed for the purposes of effecting a merger or other business operation — that will merge with Truth Social have jumped. Indeed, shares in Trump’s SPAC — a company called Digital World Acquisition Corp — have been rising all year. In just a month and a half, its value has increased by more than 180%.
The viability of the merger, announced in 2021, was in doubt due to various regulatory hurdles and constant delays. However, the U.S. Securities and Exchange Commission (SEC) has approved the prospectus for the merger between Digital World with Trump Media & Technology Group (TMTG), the company that owns Truth Social.
Digital World is expected to announce on Friday the date of the meeting at which the merger must be approved.
TMTG is chaired by Trump, who owns 90% of its capital. As of last September 30, TMTG had 36 full-time employees.