Donald Trump’s new social media venture TRUTH Social announced Saturday it had agreements to raise around $1 billion. A group of unidentified investors continues raising capital to launch the social media platform. Despite the ups-and-downs, so far, the venture has strong financial backing.
The venture began with Digital World Acquisition Corp, the blank-check acquisition firm. And they took Trump Media & Technology Group Corp public.
The October deal with Trump Media and DWAC went public in October with a valuation of $875 million. The social media venture is now valued at almost $4 billion based on a $44.97price share at the end of trading Friday.
Day traders and Trump supporters continue to buy heavily. The stock price is staying steady for the new social media platform.
Reuters reported that the former U.S. president is attracting strong financial backing. And his personal brand is enhanced by his political brand. In the meantime, TRUTH Social is several weeks away from the much anticipated “soft launch.”
It is scheduled for a full rollout at the end of the first quarter of 2022. And will feature the Trump Media Plan, a video-on-demand subscription service called TMTG+. They anticipate full streaming service capabilities. And the media company also envisions competing against the Amazon and Google Cloud Services
Unnamed investors give strong financial backing
The $1 billion is set to be raised in private investment in public equity (PIPE) transactions. In a joint statement, Trump Media and DWAC claim the money comes from “a diverse group of institutional investors.”
Many Wall Street firms, such as mutual funds, and private equity firms were not interested in the investment PIPE. There are still those reluctant to get on board with Trump due to the January 6th fiasco.
Political obstacles abound with Democrat Senator Elizabeth Warren is demanding that SEC Chairman Gary Gensler investigate the merger.
According to Reuters primary participants were “hedge funds, family offices, and high net-worth individuals. Family offices manage the wealth of the very rich and their kin.”
“As our balance sheet expands, Trump Media & Technology Group will be in a stronger position to fight back against the tyranny of Big Tech,” Trump said.
When Trump was removed from all his social media accounts he had 89 million followers on Twitter. And 33 million on Facebook, along with 24.5 million on Instagram.
Trump is optimistic that many of those blocked followers will be future customers for the platform.