If the merger goes through, Donald Trump will make billions of dollars. Stephen Hirsch—Getty Images
Donald Trump’s Truth Social makes its Wall Street debut after the Securities and Exchange Commission (SEC) finally approves a controversial merger that was delayed for years as regulators conducted a thorough investigation I’m planning on doing it.
The SEC has approved a merger between Trump Media & Technology Group, which owns Truth Social, and Digital World Acquisition Corp. (DWAC), a SPAC that plans to take the company public. That would give Trump significant ownership of the company. Trump will own about 79 million shares of the company, according to a new SEC filing.
DWAC stock was trading at just over $49.50 Friday morning, valuing the stock at about $4 billion. (Lockup rules prevent him from accessing those funds until six months after the merger is completed.)
The only step left now is for shareholders to approve the deal, which is largely seen as a formality. The company plans to set a date for a shareholder vote later Friday.
DWAC stock has remained mostly neutral over the past year, trading in a range of $13 to $17. About a month ago, it started surging like a meme stock, more than doubling in price in just a few days.
The road to SEC approval was a difficult one. In June 2022, DWAC announced that securities regulators are seeking additional documents and information regarding the proposed merger. Specifically, the agency was concerned with “communications and due diligence regarding potential targets other than the target.” [Trump’s company]”
Trump’s deal with DWAC gives him virtually unlimited power at the company. An earlier submission said personal or political conduct could not be considered a breach of the agreement, even if it was “dishonest, illegal, immoral or unethical”. President Trump also has the power to elect board members and could block deals such as takeovers that would normally require shareholder approval.
Trump’s site currently has 6.6 million followers.