Former U.S. President Donald Trump just got a mega boost! 💥 Investors have greenlit a whopping $5.7 billion deal that could send his social media platform, Truth Social, soaring to new heights.
So, what's the buzz? 🌐 Shareholders of Digital World Acquisition Corp (DWAC)—a special purpose acquisition company (SPAC)—gave a thumbs up 👍 to merge with Trump's Media & Technology Group (TMTG). This merger isn't just a big deal; it's HUGE! It values Trump's stake in TMTG at around $3.3 billion. 😮
This cash infusion is like a lifeline for Truth Social, especially as Trump faces some heavy financial battles, including a $454 million judgment in a civil fraud case in New York. 💼💸
But wait, there's more! 📈 The deal could bring in a vital $300 million to help Truth Social grow. Even though the company reported a loss of $10.6 million in the first nine months of 2023, this new funding could turn things around. 🔄
Since the merger announcement in 2021, DWAC's stock has been on a rollercoaster 🎢, nearly quadrupling thanks to support from Trump's fans and retail investors. Some enthusiastic users on Truth Social are rallying behind the deal, encouraging others to buy shares. 💪
Interestingly, even with this boost, the combined company's valuation would be less than half of Elon Musk's social media giant, X (formerly Twitter). 😲 But hey, every empire starts somewhere, right?
Speaking of numbers, Truth Social has about 8.9 million sign-ups. Not too shabby, but still a long way to go compared to X's half a billion monthly users. Trump himself has 6.7 million followers on Truth Social, versus the 88 million he had on X. 📊
As Trump gears up for another presidential run 🇺🇸, owning between 58.1% and 69.4% of the combined company could be a game-changer. TMTG was originally launched as a way for Trump to connect with his supporters after he was removed from platforms like Facebook, X, and YouTube following the events of January 6, 2021. 🗓️
With this new deal, the digital landscape just got a whole lot more interesting! Stay tuned, amigos! 🌟
Reference(s):
cgtn.com
