Truth Social, the social media founded by Trump, is set to go public on the stock market. Following numerous DOJ and SEC investigations, the final roadblocks for going on Wall Street were made.
Truth Social was created by Trump as an alternative to Twitter following his suspensions when he left the Presidency. The network has been dominated with conservative content, and is Trump’s exclusive social media right now. Gizmodo says:
The Securities and Exchange Commission (SEC) gave the green light on Thursday for a merger between Donald Trump’s social media company and the special purpose acquisition company that will allow it to become a publicly traded company, according to a new report from the Wall Street Journal.
The SEC declared effective the Registration Statement on Form S-4 for the proposed business combination between Trump Media and Technology Group and Digital World Acquisition Corp after long delays. The merger was first proposed in late 2021 but had been hindered by investigations by the SEC and the U.S. Department of Justice. Trump will hold more than 78 million shares in the newly created company, a 58.1% stake, which is worth about $4 billion at just over $50 per share as of Thursday afternoon.
Truth Social turning public could also provide much needed funds for Donald Trump in his legal battles. The company has been functioning as an organizational hub for the Trump campaign and the wider conservative movement. Politico continues:
The deal, if completed, will make Trump the combined company’s largest investor with more than 78 million shares. That could mean he would hold as much as 69 percent of the outstanding stock, though he will not be able to sell the shares for several months after the deal closes.
A new board for the combined company would also be set up, featuring the former president’s son Donald Trump Jr., one-time U.S. Trade Representative Robert Lighthizer and the former head of the Small Business Administration, Linda McMahon, according to another filing.
Truth Social’s reach is still limited compared to rival social media networks however. Twitter, now X under Elon Musk, has much wider reach and similar content moderation policies. Whether Trump will go back to Twitter/X for the campaign could make a big difference.
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