Trump's social media company finally gets its chance to go public
Published Date: 3/22/2024
Source: axios.com
Digital World Acquisition Corp. shareholders on Friday will vote on its proposed merger with Trump Media & Technology Group, the parent company of Truth Social. If successful, TMTG could become a publicly listed company by as early as next week.
Why it matters: This is the potential end to a multiyear saga that's included civil lawsuits, criminal lawsuits, closing extensions, and vote postponements.
- For timing context, when DWAC first agreed to buy TMTG, Twitter was still a public company that viewed Elon Musk as little more than a power user.
The intrigue: DWAC this week sued former CEO Patrick Orlando, in an effort to force him to vote his 14.77% stake in favor of the merger.
- Orlando hasn't yet shown his cards, except to say he'll be at the shareholder meeting when it begins at 10am ET on Friday.
The bottom line: TMTG could become the meme-iest of all meme stocks, an unprofitable social media company with billions in value on just single-digit millions in revenue.
- It also could become a financial lifeline for Donald Trump, although he'd still be subject to lockup restrictions and questions about the depth of market liquidity.