In a dramatic twist, the blank-check company spearheading former President Donald Trump’s foray into social media has received the green light from the U.S. Securities and Exchange Commission (SEC) to proceed with their much-anticipated merger. The approval, disclosed in a recent regulatory filing, marks a significant step forward for the venture, which has been plagued by delays and legal entanglements.
SEC Gives Nod Amidst Legal Turmoil
The SEC’s declaration of the registration statement for Digital World Acquisition Corp.’s merger with Trump Media & Technology Group has injected fresh energy into the venture. The announcement, made in a Wednesday securities filing, hinted at an impending shareholder vote on the agreement, expected to be announced by week’s end.
Trump’s Truth Social Merger : Market Reacts with Fervor
Upon news of the SEC’s approval, Digital World’s stock soared approximately 15% on Thursday, reaching a staggering $50 per share. Eric Swider, CEO of Digital World, expressed gratitude to shareholders for their steadfast support and teased forthcoming updates on the merger’s approval process.
Uphill Battle Amid Legal Fracas
The journey towards this milestone has been fraught with obstacles, primarily stemming from ongoing government investigations. These inquiries, including subpoenas from a federal grand jury, the SEC, and the U.S. Department of Justice, have cast a shadow over the merger talks, causing significant delays.
Trump’s Truth Social Merger : Trump’s Vision Amidst Adversity
Devin Nunes, CEO of Trump Media & Technology Group, reiterated the platform’s mission to foster free expression in the face of mounting regulatory scrutiny. Emphasizing the need to break free from the dominance of Big Tech, Nunes vowed to propel Truth Social forward as a bastion of unrestricted speech.
SPACs: A Controversial Conduit
Blank-check companies, colloquially known as special purpose acquisition companies (SPACs), have increasingly come under regulatory scrutiny. These entities, acting as conduits for private businesses to go public, have faced heightened scrutiny regarding transparency and due diligence processes.
Trump’s Truth Social Merger : Legal Shadows Loom Large
Amidst the jubilation of regulatory approval, legal woes continue to loom large. Digital World’s previous disclosure of SEC inquiries regarding the identification of Trump’s entity as an acquisition target underscores the complexity of the deal. Furthermore, a forthcoming trial in March involving venture capitalists accused of insider trading adds yet another layer of intrigue to the saga.
Market Resilience Amid Uncertainty
Despite the legal maelstrom surrounding the merger and Trump himself, market sentiment remains surprisingly buoyant. Digital World’s shares have surged nearly 180% year-to-date, propelling the company’s market capitalization to nearly $1.9 billion as of Thursday.
