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Trump's Truth Social DWAC SPAC deal falls flat after extension fails to secure shareholder support

Shareholders aren't so keen to extend the deal between TMTG and DWAC.

Sam Chandler

September 5, 2022 10:55 PM

Truth Social

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After being barred from Google Play, Trump’s Truth Social is in more trouble after an extension to the deal between Trump Media & Technology Group and Digital World Acquisition Corp fails to get shareholder support. The deal was set to net the company roughly $1.3 billion.

On September 5, 2022, Reuters has reported that the deal between the Trump Media & Technology Group (TMTG) and Digital World Acquisition Corp (DWAC) has failed after shareholders did not vote in favor of a one-year extension of the deal. TMTG is the parent company of Trump’s Truth Social, a social platform Trump announced in October of 2021. The deal would have seen TMTG receive $293 million and a private investment in public equity of $1 billion.

Svea Herbst-Bayliss of Reuters notes that the DWAC management can extend the deal by six months without the need of shareholder support. Whether this extension happens, and whether or not it’s enough time to rally the shareholders to vote in favor of a one-year extension remains to be seen.

This isn’t the only problem plaguing Trump’s Truth Social and DWAC. As mentioned, the social media platform was barred from Google Play over inadequate moderation. The deal between TMTG and DWAC is also facing a federal criminal probe, a probe that is altogether different from the outstanding civil probe of DWAC.

Without this injection of funding, Reuters notes that DWAC believes TMTG has enough funds to last until April 2023. If the management at DWAC opt to extend the deal by six months that puts Truth Social just one month shy of potentially hurting. As of afterhours on Friday, DWAC shares sit at $25.05, down from an all-time high of $175/share in October 2021.

Sam Chandler

Head of Guides

Hailing from the land down under, Sam Chandler brings a bit of the southern hemisphere flair to his work. After bouncing round a few universities, securing a bachelor degree, and entering the video game industry, he's found his new family here at Shacknews as Head of Guides. There's nothing he loves more than crafting a guide that will help someone. If you need help with a guide, or notice something not quite right, you can message him on X: @SamuelChandler