Shareholders are expected to vote today on whether to merge publicly traded shell company Digital World Acquisition with Trump Media and Technology Group, the owner of former President Donald Trump's Truth Social platform. If approved, Trump Media could go public as soon as next week, more than doubling Trump's $2.6B net worth.
Digital World Acquisition is a special purpose acquisition company, or SPAC, valued at $1.6B. It proposed merging with Trump Media in October 2021, four months before Truth Social launched. DWA's shares have climbed 145% to $43 this year, with Trump's supporters bolstering its status as a meme stock—an equity that gains popularity through social media.
The deal values Truth Social at $6B despite its financial performance. Truth Social generated about $5M in sales and lost roughly $32M since launching. Trump would own nearly 60% of the combined entity; his wealth is projected to rise by $3.5B at current share prices, though he's restricted from selling shares for six months post-merger per deal provisions.
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