By
Bena Ilyas
March 11th, 2024
Besides Twitter, other social media platforms also banned the President, as they claimed his comments are divisive and do not align with their core policies.
With the December 8 deadline to take the Trump Media and Technology Group (TMTG) public fast approaching, the Digital World Acquisition Corp (NASDAQ: DWAC), a Special Purpose Acquisition Company (SPAC) is looking to rally shareholder votes as it seeks to extend the timeline to close the merger deal with the Donald Trump linked group.
The shell company is looking for as much as $1 billion to make the deal pull through and it will require as much as 65% of its shareholders to vote in favor of the extension. Should the extension fail, DWAC will stand the risk of becoming liquidated by the deadline, thus cratering the entire deal.
The SPAC company’s executives have been making several attempts to solicit support from the shareholders as the prior move to garner the votes in September failed. With the next voting session has been adjourned four times, the SPAC’s Chief Executive Officer, Patrick Orlando initiated a built-in three months extension with the aid of his personal company Arc Global Investments II.
TMTG is the parent company of the Truth Social media, an app that was launched as a competition to Twitter following the ban of former President Donald Trump for his role in inciting a riot in the Capitol following the past presidential election.
Besides Twitter, other social media platforms also banned the President, as they claimed his comments are divisive and do not align with their core policies. The Truth Social has served as a major outfit for Donald Trump to stay in touch with the public and while its adoption momentum has been less than anticipated, the President currently has as many as 4 million followers on Truth, as against the more than 80 million on Twitter.
What if the Digital World Acquisition SPAC Extension Is Not Inked?
Should the Digital World Acquisition Corp fail to secure the necessary shareholder votes to extend the merger deadline, the Trump Media and Technology Group may not feel the brunt quite much.
Donald Trump, who has his gaze fixed on recontesting for the Presidency in 2024 has reiterated that Truth Social may eventually be kept as a private company if an extension is not reached. While there are also legal holdups keeping the deal from being finalized with some involving the United States Securities and Exchange Commission (SEC), there is no sign that these stalemates will impact the core mission of Truth Social in the mid to long term.
With Truth’s biggest rival, Twitter set to change ownership with the renewal of the bid to acquire the firm by Elon Musk, the Tesla Inc (NASDAQ: TSLA) and SpaceX CEO has revealed plans to reinstate the account of the former President, should he choose to come back to Twitter.
