Staff Reports
In a triumphant turn of events for former President Donald Trump, the social media platform exclusively tailored for his use, Truth Social, has scored a major win with a shareholders’ vote to take the company public. It seems the power of Trump knows no bounds as shareholders of the Digital World Acquisition Corp. (DWAC) have granted an extension of 12 months to complete a merger with Trump Media & Technology Group, the mastermind behind Truth Social. This extension gives President Trump the opportunity to reap lucrative benefits if the company goes public. With 55 percent voting power and ownership of nearly all of the company, Trump is set to make a splash in the world of social media once again.
DWAC has gone all out to ensure the success of the deal, using Truth Social to gather support from users and non-shareholders. The goal was to persuade owners to grant an additional year to seal the deal with Trump. If the deal had fallen through, it would have placed Truth Media & Technology Group in harrowing circumstances, scrambling to find a wealthy suitor before running out of funding. However, if a deal is reached, Trump’s media company stands to receive hundreds of millions of dollars to expand its operations and compete with established social media giants, such as the rebranded X (formerly Twitter) under new owner Elon Musk.
Before the deal can be finalized, DWAC needs to address a few setbacks, including an $18 million settlement with the Securities and Exchange Commission for alleged misleading of investors. Additionally, the company has been less than punctual in filing their quarterly reports—something regulators are likely to demand improvement on before any deal is struck with Trump.
Furthermore, the original deal stipulated that ownership and positions within the company should be structured in a way that eliminates the need for restructuring in the event of a Material Disruptive Event (MDE). In this case, an MDE would include President Trump being convicted of a felony after the deal is closed, and the terms would favor him even if he faced one of the four pending criminal indictments. It seems that this provision has been designed to protect Trump’s interests, ensuring a smooth ride for him regardless of potential legal troubles.
While Truth Social holds undeniable appeal for the former president, the siren call of X under the ownership of Elon Musk remains difficult to resist. Musk has openly invited Trump to return to the platform that greatly benefited him during his victorious presidential campaign in 2016 and throughout his first term. In fact, shortly after his arraignment in Georgia on charges of election interference, Trump defiantly posted his mugshot on X—an act that marked his first post since his permanent suspension from the platform in 2021 under its previous owner.
In conclusion, President Trump’s foray into the realm of social media with Truth Social has received a substantial boost with the approval of shareholders to take the company public. With potential funding in the hundreds of millions of dollars, Trump’s media enterprise is poised for expansion and competition against established players in the social media landscape. While hurdles remain, including regulatory improvements and legal considerations, Trump’s influence and the allure of other platforms like X cannot be understated. It appears that Trump’s media empire may soon witness a resurrection, and conservatives across the nation eagerly anticipate his return to the digital stage.
