Shareholders of Digital World Acquisition Corporation (DWAC) approved the merger with Trump Media & Technology Group (TMTG). As a result, Donald Trump's platform, Truth Social, is making its debut on Wall Street. The new company will be listed on Wall Street under the term DJT.
Thanks to this move, Trump's assets increased considerably He will be the majority shareholder and his stake in the company will be valued at more than $3 billion, according to The New York Times. DJT is initially expected to begin trading on the Nasdaq stock exchange next week.
The merger is an important relief for the former president's finances. Next Monday, Trump will have to pay the $454 million fine that a New York court imposed on him after ruling that the former president declared his assets fraudulently, so this operation is the perfect way for him to raise the funds he needs.
Three years of negotiations
This Friday, DWAC shareholders voted to approve the merger with TMTG, a company founded and chaired by Trump. He uses this company to run Truth Social, which would cause it to begin trading on Nasdaq, the second-largest stock market weight of the country behind the New York Stock Exchange. Both companies have been flirting with the merger for three years.
Now, we will have to wait and see how the Securities and Exchange Commission (SEC) reacts. The agency usually provides a quick response. However, when talks between DWAC and TMTG began back in 2021, the federal agency received criticism from the companies for not fulfilling its mission:
The SEC has needlessly delayed its review of our proposed merger, causing real and unnecessary financial harm to DWAC investors, roughly 90 percent of whom are small, retail shareholders whom the SEC is chartered to protect. Despite its standard practice to provide comments within 30 days, the SEC has failed to give meaningful feedback on DWAC’s registration statement for a stunning 115 days and counting. In the interests of simple fairness, the SEC needs to set aside any improper political considerations and bring its review to a swift conclusion.
What is DWAC?
Digital World Acquisition Corporation is a special purpose acquisition company, commonly referred to as a SPAC. It was founded in late 2020. SPACs are fictitious companies that are listed on the stock exchange and whose purpose is to acquire funds and then use them to acquire or merge with another company. On its website, DWAC is defined as "a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses."
Among its shareholders, one name stands out: Marjorie Taylor Greene. The congresswoman, one of the most loyal to Trump, invested between $15,001 and $50,000 in DWAC in October 2021 - a few months before the launch of Truth Social, according to several media outlets such as Forbes.
