NEW YORK, NY – Former President Donald Trump’s Trump Media & Technology Group, along with its planned merger partner Digital World Acquisition, recently announced a shareholder vote on their delayed deal. This step marks an important development for Truth Social, a company owned mostly by Trump. However, legal battles have erupted leading up to the vote, casting a shadow over the merger.
The leadership of both companies has been embroiled in lawsuits, with accusations of deceit and impropriety flying back and forth. The lawsuits question the distribution of Trump Media’s shares, potentially jeopardizing Trump’s stake in the post-merger company. These legal challenges come at a crucial time as Trump faces financial difficulties, owed over $500 million in legal fines.
Following his removal from Twitter after the January 6, 2021, insurrection, Trump sought to build Truth Social as an alternative to the “cancel culture” of Big Tech. However, key figures involved in the venture, including former “Apprentice” contestants Andy Litinsky and Wes Moss, have now turned against Trump, threatening his post-presidential ambitions.
Despite the legal turmoil, a shareholder meeting is set to proceed where Digital World will announce the vote results. The lawsuits have shed light on the internal workings of the companies and the challenges faced in creating a pro-Trump online presence.
The court battles have added complexity to the merger process, with Digital World seeking urgent relief to avert harm from Arc Global Investments II, Digital World’s primary investor. The legal disputes could impact the ownership of millions of dollars’ worth of stock before the lockup period expires.
The litigation reflects a unique level of discord for a deal of this nature, with analysts noting the unusual challenges faced by the companies. Trump’s future financial prospects hinge on the success of the merger, with implications for his outstanding legal obligations.
As the saga unfolds, observers await the outcome of the shareholder vote, which could pave the way for Trump to control a significant portion of the merged company. The legal battles surrounding the merger highlight the high-stakes nature of the deal and the tensions between the parties involved.