Trump Media & Technology Group, owner of the social network Truth Social, will merge with Digital World Acquisition. Thus, the investors in this company will become shareholders of the company owned by the Republican Party candidate for president of the United States.
Digital World Acquisition is a SPAC (Special Purpose Acquisition Company), this is a company that has no commercial activity and whose sole objective is to obtain funds to carry out mergers and acquisitions.
This deal increased Donald Trump’s fortune by three billion dollars (2.8 billion euros), providing him with an injection of cash at a time when he is having difficulty paying the bills resulting from the legal proceedings he is in. involved.
Trump must pay a fine of more than 450 million dollars due to a civil fraud case brought by New York Attorney General Letitia James. If he doesn’t get the money by Monday, March 25, the attorney general could begin seizing assets, including some of his properties.
The agreement also includes the transfer of 300 million dollars to Trump Media to help the cash-strapped company keep Truth Social running.
The new company’s shares are expected to begin trading publicly on Monday, identifying itself as DJT, Trump’s initials.
The deal is described as “as surprising as it is unusual”, according to sources cited by Semafor. Since its founding in 2021, Trump Media has had disappointing financial performance, failing to generate advertising revenue on Truth Social.
The shareholders of Digital World Acquisition also decided to place in the management of Trumm Media figures linked to the businessman and presidential candidate, including his son Donald Trump Jr, former Republican congressman Devin Nunes, who will also be the company’s CEOLinda McMahon, who ran the Small Business Administration during the Trump administration, and Kashyap Patel, White House national security advisor during the Trump administration.
