Earlier today, Trump media announced their plans to go public in a $875 Million reverse merger with Digital World Acquisition Corp (NASDAQ: DWAC). Trump media plans to launch a social media platform that aims to tackle the biggest names in the silicon valley. The social media network will be called “Truth Social” which can now be preordered on the Apple Appstore. The launch of the social media network comes after former President Donald Trump was banned on Facebook and Twitter.
The social media network aims to “give voice to all”. In the companies vision statement, they intend to “even the playing field” of social media by providing an open media platform where users can create content “without fear of reputational ruin”. The merger announcement has sent DWAC stock sky-high, with the SPAC company currently trading 90% higher in the first few hours of trading. Here’s everything you need to know about Truth Social and the DWAC merger.
Trump media will go public via a merger with SPAC DWAC
The SPAC proposition is no longer a new concept to investors, as hundreds of companies have opted to go public via the assistance of a Special Purpose Acquisition Company (SPAC). The proposed merger between Trump Media and DWAC will see the two companies combine and trade under the name Trump Media & Technology Group (TMTG). This deal will raise $293 Million from the DWAC Trust Fund to launch the companies Truth Social platform.
The CEO and Chairman of DWAC Patrick F. Orlando noted in a press release that the $293 Million will fuel the companies ability to scale and bring the Truth Social platform to the market. Furthermore, Orlando noted that Trump’s huge following will also benefit the combined companies success as well as bring significant shareholder value.
” I am excited to send out my first TRUTH on TRUTH Social very soon. TMTG was founded with a mission to give a voice to all. I’m excited to soon begin sharing my thoughts on TRUTH Social and to fight back against Big Tech. Everyone asks me why doesn’t someone stand up to Big Tech? Well, we will be soon!”Former President Donald J. Trump, the Chairman of TMTG
Truth Social to launch in 2022
In a press release, TMTG disclosed that TRUTH Social will be available in the first quarter of 2022. TRUTH Social plans to begin its Beta Launch for invited guests in November 2021. The platform will aim to take on the Big Tech industry, in particularly Twitter and Facebook. However, this is not the only endeavour the company plans on making.
Additionally, the company plans on launching a subscription video on demand service similar to that of Disney + or Netflix. The company plans on hosting “non-woke” programmes that differentiate from other platforms. Further information on this endeavour can be expected as the company gets closer to listing as a public entity.
DWAC stock goes sky-high
In the first three hours of today’s trading, DWAC stock skyrocketed 90% higher as investors rallied behind the merger proposition. This of course is not something we have seen in a long time, as majority of the 2020 SPAC hype has faded. Even recently SPAC merger propositions such as Virgin Orbit and Polestar received an underwhelming amount of investor interest. However, the Trump factor is definitely at play here.
Donald Trump’s empire has amassed him a wealth of $2.5 Billion which of course has earned him a large following, without mentioning his presidential term in office. Overall, time will tell if the DWAC stock hype will sustain momentum or will follow a similar trajectory to other SPAC mergers. However, there is no doubt that the Trump factor will continue to be at play with DWAC stock as well as the combined companies TMTG stock in the future.
The information above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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