DWAC Stock Spikes 350%, Digital World Acquisition Merges with Trump’s TMTG

UTC by Steve Muchoki · 3 min read
DWAC Stock Spikes 350%, Digital World Acquisition Merges with Trump’s TMTG
Photo: Gage Skidmore / Flickr

In the future, TMTG and Digital World Acquisition are going to unveil a subscription video-on-demand service dubbed TMTG+.

Digital World Acquisition Corp (NASDAQ: DWAC) stock closed October 21 trading at $45.50, up 356.83%. The gains extended during the after-hours trading session, as DWAC shares were up approximately 43.96%, to trade around $65.50. The sudden spike has been attributed to news that the blank check company Digital World Acquisition that was founded late last year has entered into a definitive merger agreement with Trump Media & Technology Group (TMTG).

Consequently, the latter became a publicly listed company. The dua anticipates taking head-on the Silicon Valley technology companies that have dominated the market for years.

“Trump Media & Technology Group’s mission is to create a rival to the liberal media consortium and fight back against the “Big Tech” companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America,” TMTG noted in an SEC filing.

Notably, the transaction values TMTG at an initial enterprise value of $875 million. However, there is a potential for additional funds should the need arise.

According to the SEC filings, the additional capital would amount to $825 million in shares for a cumulative market valuation of $1.7 billion. “ Trump Media & Technology Group’s growth plans initially will be funded by DWAC’s cash in trust of $293 Million (assuming no redemptions),” TMTG noted.

TMTG and Digital World Acquisition Corp Leadership

TMTG expects to unveil a new social media network dubbed ‘TRUTH Social’ that is now available for pre-order in the Apple App Store.

Former United States President Donald Trump said the idea behind TRUTH Social is to stand up to big tech companies.

“I am excited to send out my first TRUTH on TRUTH Social very soon. TMTG was founded with a mission to give a voice to all. I’m excited to soon begin sharing my thoughts on TRUTH Social and to fight back against Big Tech. Everyone asks me why doesn’t someone stand up to Big Tech? Well, we will be soon!” Trump noted.

As for Digital World Acquisition Corp, the deal is spectacular and likely to spearhead more profits in the foreseeable future.

“Digital World was formed to create public shareholder value and we believe that TMTG is one of the most promising business combination partners to fulfill that purpose. DWAC currently has $293 Million in trust, assuming minimal redemptions, which can fuel TMTG’s scale-up, including providing class-leading technology services to build strong and secure social networks and diverse media offerings. Given the total addressable market and President Trump’s large following, we believe the TMTG opportunity has the potential to create significant shareholder value,” Patrick F. Orlando, Chairman/CEO of DWAC, stated.

In the future, TMTG and Digital World Acquisition Corp anticipate unveiling a subscription video-on-demand service dubbed TMTG+.

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Steve Muchoki
Author Steve Muchoki

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