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The U.S. Securities and Exchange Commission allowed Donald Trump's media and technology company to merge with a blank-check acquisition vehicle in a deal that currently values the parent of his social media app Truth Social at as much as $10 billion.
The valuation is about half that of Elon Musk's much more popular social media company X and follows two years of setbacks in the Trump company's quest to complete a stock market listing.
The value assigned to the deal by the stock market has jumped more than threefold since January, as Trump tightened his grip on the Republication nomination for president. Trump will own between 58.1% and 69.4% of the combined company, depending on the extent to which investors back the deal.
Trump may divest his stake in Truth Social and cease any involvement in its management based on how his bid for president goes, Digital World Acquisition Corp (DWAC.O), opens new tab, the shell vehicle merging with Trump's company, said in a regulatory filing on Wednesday.
The filing, which disclosed new information about the business of Truth Social parent Trump Media & Technology Group, was greenlighted by the SEC, allowing Digital World to set a vote for its shareholders to back and complete the merger.
Since Digital World inked its merger agreement with TMTG in October 2021, it has been the target of investigations by the U.S. Department of Justice, ousted its chief executive, and shook up its board. It also reached an $18 million settlement with the SEC over inaccurate disclosures.
Digital World shares rose 16% to $50.49 in afternoon trading in New York on Thursday. At this stock price, and assuming no Digital World shareholders exercised the right to redeem their shares, the combined company would be worth about $10 billion and Trump would own a 58.1% stake worth about $4 billion.
https://www.reuters.com/markets/dea...way-merger-with-trumps-media-firm-2024-02-15/
The valuation is about half that of Elon Musk's much more popular social media company X and follows two years of setbacks in the Trump company's quest to complete a stock market listing.
The value assigned to the deal by the stock market has jumped more than threefold since January, as Trump tightened his grip on the Republication nomination for president. Trump will own between 58.1% and 69.4% of the combined company, depending on the extent to which investors back the deal.
Trump may divest his stake in Truth Social and cease any involvement in its management based on how his bid for president goes, Digital World Acquisition Corp (DWAC.O), opens new tab, the shell vehicle merging with Trump's company, said in a regulatory filing on Wednesday.
The filing, which disclosed new information about the business of Truth Social parent Trump Media & Technology Group, was greenlighted by the SEC, allowing Digital World to set a vote for its shareholders to back and complete the merger.
Since Digital World inked its merger agreement with TMTG in October 2021, it has been the target of investigations by the U.S. Department of Justice, ousted its chief executive, and shook up its board. It also reached an $18 million settlement with the SEC over inaccurate disclosures.
Digital World shares rose 16% to $50.49 in afternoon trading in New York on Thursday. At this stock price, and assuming no Digital World shareholders exercised the right to redeem their shares, the combined company would be worth about $10 billion and Trump would own a 58.1% stake worth about $4 billion.
https://www.reuters.com/markets/dea...way-merger-with-trumps-media-firm-2024-02-15/