Miami, Florida – Shareholders of Digital World Acquisition are set to vote on the long-awaited merger with Trump Media & Technology Group on Friday. This special purpose acquisition company aims to take former President Donald Trump’s tech and social media platform public. The merger is expected to result in Trump Media becoming a wholly-owned subsidiary of Digital World, with DWAC changing its name to Trump Media & Technology Group if approved.
The Miami-based SPAC has a history of postponing and rescheduling shareholder votes, with the current meeting scheduled for Friday to finalize the merger with Trump Media. However, Trump is currently facing difficulties securing a nearly half a billion dollar bond to appeal a $454 million civil business fraud judgment.
DWAC’s plan is to take Trump Media and Technology Group (TMTG) public through a reverse merger, with TMTG being the parent company of the conservative social media platform Truth Social. If the merger goes through, the new entity is expected to trade on the Nasdaq under a ticker such as TMTG, with Trump holding a 90% stake in TMTG valued at around $4 billion based on DWAC’s current stock price.
Despite facing challenges, Trump recently expressed his concerns on Truth Social about the financial implications of his New York fraud case. The former president shared his worries about having to potentially mortgage or sell assets at low prices if forced to put up the money for the case.
DWAC stock surged 17.8% on Wednesday to $42.90, following a 2.4% increase on Tuesday to $36.42. Market observers are closely watching the developments surrounding Truth Social, which was launched after Twitter banned Trump’s account in the aftermath of the January 6, 2021, U.S. Capitol riot.
The merger between Truth Media and DWAC, originally announced in October 2021, has faced delays due to ongoing federal investigations. However, on February 14, DWAC received approval from the U.S. Securities and Exchange Commission (SEC) to proceed with the merger, raising hopes for its successful completion.
The relationship between the value of DWAC stock and the Donald Trump brand remains tightly intertwined, with Trump’s status as the leading Republican candidate for president influencing the stock’s performance. Despite facing federal charges, Trump continues to maintain his brand’s value, although uncertainties persist.
Furthermore, DWAC stock, which had fallen over 11% in March, saw a significant increase on Wednesday surpassing the 50-day moving average. With shares up more than 140% in 2024, investors are closely monitoring the potential public offering of TMTG and Trump’s presidential nomination prospects, which have contributed to the stock’s volatility.
In conclusion, DWAC stock’s Composite Rating stands at 35 out of 99, with a perfect 99 Relative Strength Rating and an EPS Rating of 2. Investors and analysts are eagerly awaiting the outcome of the shareholder vote on Friday, as it will determine the future trajectory of DWAC stock and Trump Media & Technology Group.