A stellar rise is what a title of the company SPAC is recording on Wall Street Digital World Acquisition Corp which yesterday closed trading at + 350% and today heralds another sprint start at around + 100%. The Digital World Acquisition stock was the most actively traded on the Fidelity platform yesterday, and it’s ticker was among the most popular mentions on WallStreetBets from Reddit.
All thanks to Donald Trump. The former American president has in fact announced the launch of his own social platform. Digital World Acquisition is in fact the SPAC that is making public the social media platform planned by former President Donald Trump. DWAC is a so-called special purpose acquisition company set up to raise capital in public markets to buy private companies.
In a press release Wednesday evening, Trump’s new company, Trump Media & Technology Group, said that with DWAC “they have entered into a definitive merger agreement, which provides for a business combination that will lead Trump Media & Technology Group to become a publicly traded company. on the stock exchange, subject to regulatory and shareholder approval “.
Trump also said he would launch a platform called “TRUTH Social”, which “will oppose the tyranny of Big Tech”. The former president has been banned by social media giants Twitter and Facebook since the beginning of this year after he was accused of inciting the Capitol uprising on January 6. Prior to the ban, Trump had been a compulsive Twitter user, often posting multiple tweets per day during his presidency. After the ban, Trump struggled to make his off-screen jokes about political enemies heard in the media. Earlier this month, he requested a federal judge in Florida to force Twitter to restore his account.
Without success it can be deduced since the tycoon has thus decided to create a social network of his own. In Wednesday night’s press release, the former president’s new company said his “mission is to create a rival to the liberal media consortium and fight against Silicon Valley ‘Big Tech’ companies, which have used their unilateral power to silence the contrary voices in America ”. A first version is expected to be available in November. “We have a world – commented Trump – in which the Taliban have a large space on Twitter while your favorite president has been silenced”. The news confirms the former president’s desire to reapply for the White House in 2024.
The planned merger values Trump Media & Technology Group “at an initial enterprise value of $ 875 million, with an additional earnout potential of $ 825 million in additional shares (to the valuation that are granted) for a cumulative valuation up to $ 1.7 billion depending on the company’s post-combination share price performance ”. “Trump Media & Technology Group’s growth plans will initially be funded by DWAC cash of $ 293 million (assuming no repayments),” according to the release.