Digital World Acquisition Corp. (DWAC) stockholders have approved a merger with the social media company run by Donald Trump, marking a major move in the industry. According to estimates, the former president stands to gain at least $3 billion from this decision.
This merger, which was announced about two and a half years ago by DWAC, a special purpose acquisition company, and Trump Media & Technology Group, the firm responsible for the Truth Social app platform, has now been approved by the shareholders of DWAC.
Trump is facing escalating legal obstacles, including the impending collection of a substantial $454 million civil fraud judgment by New York Attorney General Letitia James, which is likely to impact this decision.
After the merger is approved, Trump Media will start trading publicly next week under the stock name DJT, which is an acronym for Trump’s initials and remembers his previous hotel and casino enterprise.
There was a short-lived decline in DWAC’s share price after approval, but Trump still stands to earn a large amount—roughly $3 billion—based on the success of the combined business. His interest is about 80 million shares.
Nevertheless, Trump’s capacity to instantly profit from this windfall is limited. At least six months must pass before Trump may sell his shares, according to the provisions. Still, rumors persist that Trump allies on the board of directors, including Robert Lighthizer and Donald Trump Jr., may decide to loosen these limits, giving the president access to cash he needs to pay his increasing legal bills.
Truth Social is well-positioned to serve as a platform for Trump’s communication leading up to the 2024 presidential elections, and the confirmation of the merger demonstrates investors’ faith in his venture into the social media realm.
With DWAC ceasing operations after the acquisition, the impending IPO of Trump Media is expected to be a watershed moment, ushering in a new age of digital media under Trump’s leadership.
Despite all this, Trump’s social media presence—especially after his ban from Twitter after the Capitol riot—has been a point of concern. Truth Social and similar platforms have recently attracted millions of users, suggesting a possible return to popularity in the digital world and, by extension, a revival in his online influence.
His return to social media highlights the changing dynamics of digital communication and how it intersects with political discourse in the contemporary period, which is relevant to Trump’s ongoing political objectives.
