The Merger of Digital World Acquisition Corp. and Trump Media & Technology Group
Key Takeaways:
- Digital World Acquisition Corp. shareholders approve merger with Trump Media & Technology Group.
- Trump’s social media platform, Truth Social, could start trading under the symbol “DJT” next week.
- Donald Trump to own nearly 80 million shares of the newly formed company, valued at over $3 billion.
Shareholders of Digital World Acquisition Corp. (DWAC) have reportedly given their approval for the blank check company’s merger with Trump Media & Technology Group (TMTG), the parent company of former President Donald Trump’s social media platform, Truth Social. This merger marks a significant development in the world of social media and finance.
The newly formed entity, Trump Media & Technology Group, could potentially begin trading under the ticker symbol “DJT,” which is a direct reference to Donald J. Trump. This move is expected to take place as early as next week, signaling a new chapter for both companies and their stakeholders.
The journey leading up to this merger has been filled with twists and turns. The initial announcement of the merger was made in October 2021, but it was soon followed by investigations from regulators. Allegations surfaced that the companies had misled investors by not disclosing their merger talks prior to DWAC’s public listing.
Despite facing legal challenges and incurring substantial legal expenses and penalties, Donald Trump is set to become a major shareholder in the newly formed company. With ownership of nearly 80 million shares, Trump’s stake in the company is estimated to be worth more than $3 billion based on Thursday’s closing prices.
As part of the merger agreement, Trump is obligated to hold onto his shares for a lock-up period of six months. However, there is a possibility that the new company’s board may choose to release him from this obligation, depending on future developments.
Leading up to the shareholder vote on Friday, DWAC shares experienced a surge of approximately 10%. However, following the approval of the merger, the stock price took a dip and was trading about 8% lower as of 1:40 p.m. ET. This fluctuation in share price reflects the market’s reaction to the merger news and its implications for both companies.
This merger between Digital World Acquisition Corp. and Trump Media & Technology Group represents a significant milestone in the world of social media and technology. The potential trading of Truth Social under the symbol “DJT” and Donald Trump’s substantial ownership stake in the new company are key highlights of this development.
For more information on this merger and its implications, you can read the original article on Investopedia.
Conclusion:
The merger between Digital World Acquisition Corp. and Trump Media & Technology Group marks a significant moment in the world of social media and finance. With shareholders’ approval secured, the newly formed entity is poised to make its mark in the industry under the leadership of former President Donald Trump. The trading of Truth Social under the symbol “DJT” and Trump’s substantial ownership stake in the company are key aspects to watch as this merger unfolds.
