Wednesday night, former President Donald Trump announced his new social media network. Trump says Truth Social will “stand up to the tyranny of Big Tech.” The platform business is being developed by Trump Media & Technology Group (TMTG) and is being acquired via SPAC by Digital World Acquisition Corp.(DWAC).
As part of its launch, Trump announced that Trump Media would enter a definitive merger agreement with DWAC that will allow it to become a publicly listed company, subject to regulatory approval.
DWAC was founded in December 2020 for the purpose of acquiring or merging with other companies through the Special Purpose Acquisition Company process.
The newly minted company will operate using funding provided by DWAC’s $293 million in cash holdings.
With news of the merger, shares soared over 400% on Thursday. Trading in the Trump-linked SPAC was halted multiple times due to volatility.
At Fidelity Digital World Acquisition was the most actively traded stock. It was also soaring on the consolidated tape of the New York Stock Exchange and Nasdaq listings.
