Trump's Truth Social clears final regulatory hurdle for merger with cash-flush acquisition firm

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Goldhedge

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I remember a thread when TS started... (could someone move this there?) I can't find it.

Trump's Truth Social clears final regulatory hurdle for merger with cash-flush acquisition firm​

Acquisition firm has seen its value soar as Trump won early primaries, merger now poised to occur

Truth Social, Donald Trump's social media platform, announced late Wednesday it had clear its final regulatory hurdle for merging with a cash-flush acquisition company whose value has soared in recent weeks as the former president won the first three major presidential primary contests.

Digital World Acquisition Corp. (DWAC) announced that the Securities and Exchange Commission had "declared effective" the registration statement for its proposed merger with Trump Media and Technology Group, the parent company for Truth Social.

 
I can't find it.

Neither could I.

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Legally Troubled Donald Trump May Earn Billions As His Social Media Firm Gets SEC Nod For DWAC Merger — But It'll Be A Long Wait​


Donald Trump-linked SPAC Digital World Acquisition Corp.


DWAC-4.85%

+ Free Alerts
announced late Wednesday that the SEC has approved the registration statement regarding its proposed merger with Trump Media & Technology Group, owner of the Truth Social platform. The amended S-4 statement filed with the regulator indicates that the former president could receive a windfall at a time when he faces financial challenges due to legal issues.

Fine Print: As per the merger agreement, Digital World will be renamed New Digital World, with each share valued at $10. Trump will hold at least 58.1% of the voting power and outstanding shares of New Digital World, making it a “controlled” company.

Reports suggest Trump could receive over 78 million shares, valued at approximately $3.94 billion based on DWAC’s closing price on Thursday, which ended at $50.56, up 16.10%, according to Benzinga Pro data.

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DWAC discloses new lawsuits seeking to block merger with Trump Media & Technology​

Digital World Acquisition Corp. on Friday again amended its filing with the Securities and Exchange Commission regarding its planned merger with Trump Media and Technology Group, former President Donald Trump’s social-media company.

In the new filing, the special-purpose acquisition corporation or SPAC, disclosed new lawsuits that seek to block the merger, as well as changes to its bylaws that specify that any complaints brought against it be directed to the U.S. District Court for the Southern District of Florida.

And on Thursday, the board extended the date by which the company has to complete the merger to June 8 from March 8. The extension is the third of four three-month extensions permitted.

The filing disclosed a lawsuit filed on Thursday by former DWAC chairman and chief executive Patrick Orlando, that seeks to block the deal unless he is awarded a larger number of shares than DWAC is currently proposing. The news was first reported by Reuters.

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DWAC: Trump Merger Could Close Next Week Bringing Volatility​

  • On Friday the 22th, Digital World will hold a meeting of shareholders to vote the merger with Trump Media.
  • After this, the merger could be closed quickly and the resulting company with stock symbol DJT could commence trading on the Nasdaq next week.
  • The potential media coverage could result in significant volatility and a large price movement.
  • Over the long term, I simply do not see this company becoming a decent investment, but in the short term, traders could make money during upcoming events.
The Trump SPAC Digital World Acquisition Corp. (NASDAQ:DWAC) is planning on merging with Trump Media & Technology Group. On Friday the 22th, DWAC will hold a meeting of shareholders to vote on the approval. This merger was already announced in 2021, but since then, it has finally received SEC approval. The merger could already happen next week.

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Trump social media company will go public as DWAC shareholders approve merger​

  • The price of shares in Digital World Acquisition Corp. fell by more than 12% after the shell company’s shareholders approved a merger with the social media company owned by Donald Trump.
  • DWAC opened the trading day at $44.20 per share.
  • The newly merged company, Trump Media, could begin trading under the new ticker DJT next week.
  • Trump holds a majority of shares in the new company, which would be worth $3 billion or more.
The price of shares in Digital World Acquisition Corp. fell by as much as 12% Friday morning after the shell company’s shareholders approved a merger with the social media company owned by former President Donald Trump.

DWAC had opened the trading day at $44.20 per share, but tumbled to below $38 at some points after the vote.

 

Trump Media stock closes 21% lower after company reports $58 million loss for 2023​

  • The share price of Trump Media closed 21.47% lower Monday, hours after the social media app company tied to former President Donald Trump reported a net loss of $58.2 million on revenue of just $4.1 million in 2023.
  • The newly publicly traded social media company of former President Donald Trump had total revenue of just $4.1 million last year, according to a Securities and Exchange Commission filing.
  • Trump Media & Technology Group ”“expects to incur operating losses for the foreseeable future,” says the filing.
  • Trump Media, which trades under the ticker DJT on the Nasdaq, owns the Truth Social app.
 

Trump-and-dump: Speculators bet on Truth Social 'meme' stock​

April 2 (Reuters) - Mohammed Al Shalloudi, a 21-year-old graduate data analyst in the United Arab Emirates who invested in Donald Trump's social media company, has little in common with the former U.S. president's political supporters.

Al Shalloudi bought shares in Trump Media and Technology Group (TMTG) (DJT.O), opens new tab, but not because he believes in the business of its app Truth Social or because he is a Trump fan. He is part of an army of speculators seeking a quick lucrative trade whose bets on TMTG have made it one of the most overvalued and actively traded U.S. stocks.

Al Shalloudi said he bought at $37 per share and cashed out late last week at $65 per share, clinching a 76% return on his $4,000 investment in just a few days. TMTG's stock closed on Monday at $48.66 after listing on Nasdaq last week in a deal that valued it at just $10 per share.

“It was a no-brainer. You buy the stock, wait for Trump's fan base to hear about it, and enjoy your profit,” Al Shalloudi said.

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Two defendants in Trump Media insider trading case signal possible guilty pleas​

  • A Florida venture capitalist and his brother moved toward potential guilty pleas in an insider trading case connected to the merger that took Donald Trump's social media company public.
  • Michael Shvartsman, the venture capitalist, and his brother, Gerald Shvartsman, previously pleaded not guilty in the criminal case, which relates to trading in 2021 in shares of the shell company that ended up merging with Trump Media last week.
  • A change of plea hearing for the brothers was scheduled for Wednesday afternoon in U.S. District Court in Manhattan. A change of plea hearing typically involves a defendant pleading guilty.
A Florida venture capitalist and his brother moved Monday toward potential guilty pleas in an insider trading case connected to the merger that took Donald Trump's social media company public last week.

Michael Shvartsman, the venture capitalist, and his brother, Gerald Shvartsman, both previously pleaded not guilty to criminal charges of insider trading and conspiracy, related to trading shares in of the shell company that merged with Trump Media last week.

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... Mohammed Al Shalloudi, a 21-year-old graduate data analyst in the United Arab Emirates who invested in Donald Trump's social media company ...
...
“It was a no-brainer. You buy the stock, wait for Trump's fan base to hear about it, and enjoy your profit,” Al Shalloudi said.
...

America!

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Trump Media sues its co-founders, accuses them of ‘severe mismanagement’​

The media company that Donald Trump recently took public is suing its co-founders, accusing them of failing “spectacularly” to get the company off the ground and then trying to “thwart the deal.”

The lawsuit filed in Sarasota County, Florida, civil court seeks to bar Trump Media & Technology Group co-founders Wesley Moss and Andrew Litinsky from appointing members to the company’s board — or from owning any of its shares.

Moss and Litinsky claim that a 2021 agreement that Trump signed with a company they founded, United Atlantic Ventures, LLC, guarantees them an 8.6% share of Trump Media’s total stock, undiluted by the issuance of new shares.

At DJT’s closing price Tuesday, that share would be worth about $601 million.

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Seems about right. Same pattern one sees for most stocks...

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An accounting firm hired to vet Truth Social's financials quit after less than a year because it no longer wanted to be linked to Trump: FT​

  • WithumSmith+Brown quit being the auditor for Trump Media just months after being appointed.
  • The firm didn't want to be associated with Donald Trump and his company, per the Financial Times.
  • Trump Media's share prices have plunged in the weeks since it went public.
The accounting firm that was first hired to audit former President Donald Trump's social media company quit just months after it was appointed, the Financial Times reported on Monday.

WithumSmith+Brown was appointed to vet Trump Media & Technology Group's financials soon after it was founded in early 2021. But the firm resigned before the end of 2021, the FT reported citing people familiar with the matter.

According to the FT's sources, WithumSmith+Brown no longer wanted to be associated with Trump and his company after several months on the job.

The accounting firm declined to comment on why it had resigned when approached by the FT.

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What phrase do you want to use?
Crash and burn?
Flash in the pan?

Really, a good microchasm of Trump himself and everything he touches. Looks good at first, but the more information you get and the more you find out, the worse it looks.

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LA Times

Column: With his Truth Social stock, Trump may be laughing all the way to the bank — but his investors have reason to weep​

With their life savings, childrens' college funds and their own retirement prospects at stake, most people probably view investing in stocks as a serious business. Now and then, however, the markets produce comedy gold.

Hello, Trump Media & Technology Group.

The owner of Truth Social, a social media platform exclusively hitched to Donald Trump, staged an initial public offering March 26 amid a torrent of speculation over how many billions the IPO would produce for Trump himself. In the event, the figure was a paper gain of about $5 billion for him, virtually pure profit.

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