Trump’s social media venture becomes best-performing SPAC ever

Former president’s Digital World Acquisition sparked a retail trading frenzy

Shares in Digital World Acquisition Corporation (DWAC), the company connected to a planned social media app backed by former US president Donald Trump, have rallied to outperform every other special-purpose acquisition company (SPAC). Digital World currently ranks as the best-performing SPAC stock ever, according to SPAC Research.

The outstanding performance comes despite the regulatory risks facing the merger. The shares ended trading at $73.12 on Friday, way above their $10 initial public offering price. That infers a valuation on the combined entity of close to $13 billion, including debt.

Moreover, DWAC’s share performance has boosted the average trading price of all 114 SPACs that have announced deals that are yet to close. According to SPAC Research, the average SPAC (excluding DWAC) is currently trading at $9.88 a share, below the average trust value of about $10.05.

Read more

Trump announces launch of new media group & social network to ‘stand up to the tyranny of Big Tech’

In October, Trump announced plans to launch a new media company that will “stand up to the tyranny of Big Tech.” Trump Media & Technology Group (TMTG) simultaneously inked an $875-million deal to merge with a SPAC company called Digital World Acquisition Corp.

SPAC deals, also known as reverse mergers, have become very popular in recent years, with celebrities, former politicians and athletes getting involved. SPACs raise money from the public and promise to use those funds to acquire private firms. It’s an increasingly popular way for private companies to go public.

However, SPACs regularly come under regulatory scrutiny. Digital World disclosed in December that federal regulators have opened investigations into the planned merger for potential violations of securities laws around disclosure.

App Store currently lists February 21 as the date that Trump’s new social media app, Truth Social, will be available to download.

For more stories on economy & finance visit RT’s business section

Leave a Reply

Your email address will not be published. Required fields are marked *