Some investors decide not to merge SPAC with Trump Media

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Some investors decide not to merge SPAC with Trump Media

Some of Digital World Acquisition Corp’s investors are pulling out after deciding to buy social media app Truth Social.

Truth Social is an application that has many similarities with the micro-blogging site Twitter. Truth social earlier said that it is a social media application aimed at promoting freedom of speech. Previously, the app was removed from the Google Play app platform after failing to offer a content moderation policy. The application is available on the Apple App Store.

Decision to withdraw

The digital world acquisition said that out of a total of $1 billion in investment commitments made by PIPE, (Private Investment in Public Equity), private investors terminated nearly $139 billion. While Digital World has refrained from disclosing the names of the investors who have backed down, reports suggest that the management of Sabby, who had invested 100 million, announced its termination. A comment from Sabby is awaited.

Reports point out that these investors have time until the 20th of this month, in case they want to move the money. Apparently a few other investors are considering pulling out. Some even expect the DWAC to provide them with suitable conditions.

Other investors could pull out in the coming weeks, sources said, as they can end anytime after the deadline. Many are waiting for DWAC to offer more advantageous terms to PIPE investors, according to a source.

mired in controversies

The deals between TMTG Group, SPAC and Trump Media are mired in controversy. The SPAC is under investigation by the authorities for irregularity. The digital world said in a statement that it was possible to extend the life of the agreement by at least three months. His first attempt to secure a one-year extension was deemed insufficient.

Trump Media and Technology Group

TMTG (Trump Media and Technology Group) believes mainstream US media is left-wing and biased. The about section indicates that mainstream media stifles the voice and therefore the future. TMTG says it aims to build a new parallel medium to counter the narrative established by mainstream media. TMTG was founded in 2021 by former US President Donald Trump. Donald Trump has been banned from Twitter following the Capitol Hill saga. TMTG has yet to comment on the issue.

SPACs or special purpose acquisition companies that are supposed to open for two years are mainly used to list companies on the stock market.

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