Social Media Merger, an S&P 500 company who develops influencer marketing technology, saw their share price surge overnight after President Trump praised Elon Musk’s recent Twitter deal with the company’s competitor, Truth Social, in a tweet sent late Monday night (1/30/19). A great and fair deal—this is why we love America! the tweet read.
As Elon Musk assumed control of Twitter on Friday, shares of Digital World Acquisition Corp., the firm with a blank check that will list Trump Media and Technology Group and its Truth Social platform, increased.
Musk has already declared that he will unban Trump’s account on Twitter, which was shut down following the violence at the Capitol on January 6, 2021. The former president only has 4.37 million followers on Truth Social compared to his 88 million followers on Twitter.
After falling early in the day, DWAC shares ended the day more than 3% higher on Friday as the market as a whole rallied. To date this year, the stock has dropped more than 67% to $17.07. $101.87 was its 52-week high.
Trump Media presently has until December to complete the merger with DWAC and go public, barring court intervention. There will be a shareholder vote on Thursday to extend that deadline to September 2023, but the previous four shareholder votes have not received the required 65% support.
Trump praised Musk’s acquisition in a post on Truth Social on Friday while simultaneously promoting his own platform.
“TRUTH SOCIAL has taken on a life of its own. It had more users last week than any other platform, including TikTok, Twitter, Facebook, and the others, wrote Trump. I’m relieved that Twitter is finally being managed by rational people rather than radical leftist lunatics and manics.
A request for comment from DWAC was not immediately complied with.
A few financial and legal obstacles still need to be overcome for the former president’s programme.
Former Truth Social executive William Wilkerson filed a Securities and Exchange Commission whistleblower complaint alleging that Trump Media and DWAC considered a merger before DWAC announced it, which would have violated securities laws. A federal criminal investigation is presently looking at the deal.
Trump has already cautioned that he might not need the hundreds of millions from the transaction, and DWAC has also warned that failing to prolong the arrangement might lead to the SPAC’s liquidation.
At a rally in Michigan in early October, Trump told supporters, “If they don’t come with the finance I’ll have it private.” It is simple to keep it secret.
Trump Media and Technology Group has secured a respectable amount of private funding thanks to the former president.
Among the notable investments is $9.8 million from oil executive Karl Pfluger, the brother of Texas Republican U.S. Rep. August Pfluger, who has received Trump’s support.
According to a Trump Media & Technology Group spokeswoman, August Pfluger does not personally own any shares of the company. The spokesperson added: “He received the President Trump’s support long before the launch of Truth Social.”
Patrick Walsh, a former associate of Trump Media Chief Financial Officer Philip Juhan, is one of the other investors. Walsh has a $6.2 million interest. Trump Media received a $200,000 donation from Roy Bailey, who served as the co-finance chair of the 2020 re-election campaign. Trump’s ambassador to Portugal, George Glass, donated $500,000. Bob McNutt, a Texas fruitcake magnate, contributed $100,000.
Following the merger, DWAC was expected to get an additional $1 billion in private investment, but a crucial deadline passed in September, allowing investors to sell their shares. At least $138 million in financing has been removed since then.