Truth Social, the Trump-branded social media thingy, continues to fail dramatically. In order to become a publicly traded company, Trump and friends got Digital World Acquisition (DWAC) to become its special purpose acquisition company (SPAC). Business Insider reports that on Wednesday, DWAC shares fell another 7%, compounding what is now a six-day decline to about 30%. Since the announcement of the deal, the company’s stock has lost 90% of its value from the highest point of $175 per share.
There is an investigation into the merger by the U.S. Securities and Exchange Commission (SEC). Truth Social is (of course) arguing that the real issue is a political one, and accuses the SEC of dragging its heels in reviewing the SPAC deal. In a regulatory filing, Trump Media & Technology Group (TMTG), the media company that owns Truth Social, wrote:
"In light of the obvious conflicts of interest among SEC officials and clear indications of political bias, TMTG is now exploring legal action against the SEC. Despite the increasing weaponization and politicization of government agencies, Truth Social will continue its expansion plans, supported by the unprecedented levels of user engagement on the platform.”
Of course, there are quite a few things that Truth Social execs, whoever they might be at this point, forgot to mention about their business—and what has been going on over at Digital World Acquisition.
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Digital World becoming Truth Social’s SPAC has indeed been delayed in part because of the ongoing SEC review. But it has also been delayed because a little over two weeks ago, the company revealed it would be delaying the shareholder vote that would support a year-long extension to complete the deal with the Trump media company. What that actually means is that DWAC couldn’t get at least 65% of the shareholders on the board to vote for that extension. This brief moment led to an equally brief rise in stock prices for the company, after independent advisory firm and sponsor of DWAC, Arc Capital, put down money to extend the merger deadline for three months without shareholder approval. Arc Capital is a Shanghai-based investment firm that the SEC has accused of being deceitful to its investors.
Truth Social came out of the gate stumbling and shoddy, as all Trump-connected endeavors do. Trump’s cache as a media mogul has never really meant much more than that he was the orangest car crash worth watching and reporting. The MAGAsphere has been what the kids call stolidly tentative in their lack of embracing the platform. Within weeks of its “soft launch” top executives had already jumped ship from platform.
A SPAC is a shell company that allows a business like Truth Social to begin trading publicly faster while also offering up a chance to raise more money for the business—as most of us already sort of realize, Trump hasn’t really had his own big money for decades. Arc Capital’s extension money delays the need for a vote until the beginning of December. However, with well over a billion dollars at stake, if it does not go through, DWAC will have to liquidate and give the money back to its investors, and Truth Social will have to ask Devin Nunes and Donald Trump if they have any other bright ideas.
MAGA-millionaire henchman Marjorie Taylor Greene is already taking a bath on her investment in Truth Social, this new, sustained plummet must feel like flying!
So what’s happening over at Truth Social right now, you ask?
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