When Twitter of old became a Leftist controlled cesspool of censorship, Donald Trump set out to create a social media site free of suppression. ‘Truth Social’ was born out of that desire. Then, along came Elon and once again, Twitter (X) became the free speech beacon and conservatives flooded back to the platform. This and other developments have caused problems for ‘Truth Social’, allegedly. Now, it’s being revealed a consequential deadline is on the horizon for the embattled platform.
Now, almost two years later, the deal faces what could be a catastrophic threat. With the merger stalled for months, Digital World is fast approaching a Sept. 8 deadline for the merger to close and has scheduled a shareholder meeting for Tuesday in hopes of getting enough votes to extend the deadline another year.
If the vote fails, Digital World will be required by law to liquidate and return $300 million to its shareholders, leaving Trump’s company with nothing from the transaction.
For Digital World, it would signal the ultimate financial fall from grace for a special purpose acquisition company, or SPAC, that turned its proximity to the former president into what was once one of the stock market’s hottest trades. Its share price, which peaked in its first hours at $175, has since fallen to about $14.
Yes folks. TruthSocial is almost dead and Trump will have to return $300 million to investors and close down TS very soon.https://t.co/gmWPR8SN7k
— Bill Mitchell (@mitchellvii) September 3, 2023
September 8th is a very important day in Trump world. https://t.co/WdIQc8gRl0
— Bojac (@HeartlessBojac) September 2, 2023
Hopefully the investors are smart and vote no on the extension. They’ll never get any money out of Trump after this month.
— Agent Of Sanity (@AgentOfSanity) September 3, 2023
I might actually care about this were it not for Trump’s hubris.https://t.co/I8xrwWU2Wb
— Jake (@Jake67_patriot) September 3, 2023
Another Trump venture gone bust. This guy just loses. It’s not the 1980s anymore.
— XcessiveAz_F (@Use2LeanLeft) September 3, 2023
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Most tech ventures fail. Your typical millionaire/billionaire have had dozens of failures because they are risks. The secrete of success is winning more often than failing. Truth Social is a corp, Trump never touched that investment money, & he’s not “paying back” anything.
— Theodore Smith (@RannXerox) September 3, 2023
Others see this as just the price of doing business. When you are very rich and start multiple companies, some of them are bound to fail, while others thrive. This was just another investment to Trump.
Trump Media owns Truth Social.
The idea was to use a SPAC (DWAC) to take it public, avoiding many restrictions in the process.
But DWAC either has to merge with Trump Media, or give the money back.
Unless 65% of the 400,000 shares vote “yes” to another extension, DWAC by…
— Chuck Hollis (@cphollis59) September 3, 2023
Former President Donald Trump has had big dreams of being a media mogul in addition to presidential candidate.
But the path has been filled with potholes and faces a big moment of truth this coming week.
Digital World Acquisition Corp. (DWAC) , a Florida company formed to enable Trump’s media company, Trump Media & Technology Group, to go public quickly, needs real help from its shareholders.
Trump Media is the holding company that owns Trump Social, which regularly posts the former president’s comments
Digital World raised its $300 million in October 2021, selling shares at $10 each. The shares briefly shot up to $175. But Digital World still hasn’t been able to close the deal in large part because of objections from the Securities & Exchange Commission, and the shares have slid below $20.
On Friday, the shares closed at $16.51, up 9 cents. They finished August down 2.7%. They’re up 31.5% for the third quarter but only 10.01% on the year.
Now Digital World is asking its shareholders to vote Tuesday to extend the deadline for up to another year — or Digital World will liquidate. Digital World must win 65% of shares for the extension to pass, according to SEC rules.
I am now receiving these emails daily. Apparently there will not be enough support to extend the deadline. pic.twitter.com/YC86TcRYOV
— Jules Levine (@levi20802) September 3, 2023
You seem to be mixing up Truth Social and DWAC. DWAC has to return the $300 million to investors. Thrush Social will lose the value of shares. Also DWAC paid the fine https://t.co/fo336Op3Ez
— Al Toth (@altoth_99) September 2, 2023
You guys hate Trump so much you’ll try to discredit him at every opportunity. Newsflash, businesses aren’t guaranteed. He had no clue that an established twitter would be taken over by @elonmusk and prosper.
“Add this to the list of his business failures” 🤣🤣
What businesses… https://t.co/6pMHAj8Ebj— Daily Woke (@DailyWoke101) September 2, 2023
“Truth Social now faces a “catastrophic threat” of having to pay its investors back a whopping $300 million if its merger collapses…”
☝️ This is incorrect. It’s not Truth Social that would return $ to its investors. It’s the SPAC, Digital World ($DWAC). https://t.co/b6ZzcDa3Z1
— Ivan the K™ (@IvanTheK) September 2, 2023
It is frustrating to try and figure out what is accurate and what is simply reporters wallowing in their dislike of Trump. One thing is for sure … never count Trump out. He knows how to make lemonade from some really sour lemons. This is one to watch for further developments. There does appear to be a big deadline looming on September 8. Things change, however, and there very well may be further extensions and delays. It will be interesting to watch the twists and turns.