On October 22, Trump media announced their plans to go public in a $875 Million reverse merger with Digital World Acquisition Corp (NASDAQ: DWAC). Trump Media (TMTG) has now launched their highly anticipated social media platform that aims to tackle the biggest names in the silicon valley.
The social media network is “Truth Social” which can now be downloaded on the Apple Appstore. The launch of the social media network has sent DWAC stock sky-high in pre-market trading, currently up 17%.
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”.
More recently, DWAC disclosed that they had raised an additional $1 Billion through PIPE investors, which boosts the combined companies cash on hand balance by roughly 350% if the merger is successful. Here’s everything you need to know about Truth Social and the DWAC merger.
Trump media to go public in DWAC merger
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). The DWAC merger 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
DWAC Merger: Truth Social launches on the App Store
On Monday 21 February, Trump Media officially launched its social media platform on the Apple App Store. The platform has been undergoing testing from users over the past few weeks prior. Although behind schedule, DWAC investors will be glad to see the platform off and running prior to the closing of the merger.
The social media 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
Following the merger announcement last year, DWAC stock skyrocketed 90% higher as investors rallied behind the merger proposition. This of course was a surprise, as the majority of the 2020-21 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. Since the announcement, the DWAC stock has maintained momentum which is rarely seen in SPAC stocks. 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 if the DWAC merger is successful.
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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