CNBC Television published this video item, entitled “Digital World Acquisition Corp soars after Trump SPAC deal” – below is their description.
Shares of Digital World Acquisition Corp (DWAC) soared more than 335% today after the company announced a plan to merge with Trump Media and Technology Group to form a new social media platform. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
In a press release Wednesday night, Trump’s new company, Trump Media & Technology Group, said it and DWAC “have entered into a definitive merger agreement, providing for a business combination that will result in Trump Media & Technology Group becoming a publicly listed company, subject to regulatory and stockholder approval.”
Trump also said he would roll out a platform called “TRUTH Social,” which he claimed will “stand up to the tyranny of Big Tech.”
Trump has been banned by social media giants Twitter and Facebook since early this year after he was accused of inciting the Jan. 6 Capitol riot by a mob of his supporters. The violence interrupted the confirmation of Trump’s Electoral College loss to President Joe Biden.
Before the ban, Trump had been a compulsive user of Twitter, often sending out multiple tweets per day during his presidency. Since the ban, Trump has struggled to get his off-the-cuff brickbats against political foes heard in the mass media.
Trump earlier this month asked a federal judge in Florida to force Twitter to restore his account there.
In a press release Wednesday night, Trump’s new company, Trump Media & Technology Group, said it and DWAC “have entered into a definitive merger agreement, providing for a business combination that will result in Trump Media & Technology Group becoming a publicly listed company, subject to regulatory and stockholder approval.”
Trump also said he would roll out a platform called “TRUTH Social,” which he claimed will “stand up to the tyranny of Big Tech.”
Trump has been banned by social media giants Twitter and Facebook since early this year after he was accused of inciting the Jan. 6 Capitol riot by a mob of his supporters. The violence interrupted the confirmation of Trump’s Electoral College loss to President Joe Biden.
Before the ban, Trump had been a compulsive user of Twitter, often sending out multiple tweets per day during his presidency. Since the ban, Trump has struggled to get his off-the-cuff brickbats against political foes heard in the mass media.
Trump earlier this month asked a federal judge in Florida to force Twitter to restore his account there.
In the press release Wednesday night, the ex-president’s new company said its “mission is to create a rival to the liberal media consortium and fight back against the ‘Big Tech’ companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America.”
Digital World Acquisition was incorporated in late 2020, shortly after Trump lost a reelection bid against Biden.
The ticker DWAC was among the top 10 most popular names on Reddit’s WallStreetBets chatroom Thursday, even exceeding meme stock GameStop’s mentions, according to alternative data provider Quiver Quantitative.
That could be a sign that retail investors active on social media platforms were fueling the rally in the SPAC.
The Securities and Exchange Commission did not immediately respond to a request for comment about the level of trading in the SPAC.
The planned merger values Trump Media & Technology Group “at an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 Billion depending on the performance of the stock price post-business combination,” the press release Wednesday said.
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