Donald Trump's Truth Social is going public via a SPAC merger after DWAC shareholders approved the move; TMTG will be listed on the Nasdaq as early as next week
The shareholder vote follows SEC approval of the proposed combination, moving the transaction from regulatory clearance to completion. It gives TMTG a defined path from its SPAC partner into the public-market reporting and trading environment.
The move also arrives after filings disclosed early losses alongside limited net sales, making the eventual public valuation especially consequential: investors will be able to trade on the company’s operating disclosures rather than only the merger thesis.
First-order effects
DWAC shareholders and TMTG holders can complete the combination, with TMTG set to become a Nasdaq-listed company and its equity available to public-market investors.
TMTG assumes the obligations and scrutiny associated with a public listing, while DWAC’s role as the merger vehicle winds down.
Second-order effects
The listing creates a continuously traded market verdict on TMTG’s business performance, putting greater weight on future disclosures after the previously reported losses and low sales.
Other SPAC sponsors and targets gain a fresh reference point for whether a high-profile, brand-led media company can sustain investor demand after the merger closes.
Third-order effects
If public trading persists as the primary funding and valuation route for politically aligned media ventures, their business execution and audience economics will become more directly exposed to public-market discipline.
The case underscores how SPACs can move companies with unconventional investor narratives into public markets, where disclosure requirements may test the durability of those narratives.
The trend: This is one data point in the use of SPAC mergers to bring niche, founder- or personality-led media businesses into public equity markets.
Update: Trump Media's merger partner saw its shares plunge 13% today. Given Trump's stake, that's about a $457 million one-day loss. And it's paper money; Trump can't sell his shares unless he gets a lockup waiver, which is very rare and could tank the stock even further. …
It will be astonishing and unsurprising if the Board OK's his early share sales and he dumps massively, tanking the price but extracting wads of cash along the way.
Naive if you think it's the Board's option. Other major investors and the investment bankers are the ones who demand the lockup. Last thing they want to see is major sales of DWAC stock tanking its share price.
New: The Trump Media merger is a go. Shareholders vote yes; could hit public stock market by Monday. Trump will own about 60% percent of the Truth Social owner, which at a current share price would be worth about $3 billion. …
News media is doing a really horrible job covering this. There's not a bank in this universe that will give him a loan against that stock, nor can he sell it (it's locked up for six months without a waiver), and if he were to try to sell that much stock, the value would collapse…
Oof While we knew Digital World stockholders weren't the sharpest tools in the shed, some dope holding 4,939 shares of $DWAC redeemed the shares for $10.85 instead of selling at $37.00. This mistake cost them $130,000 You're fired [image]
Has anyone written a good explanation for why people are willing to pay billions of dollars for part ownership of Truth Social? For all the articles I've read about the deal & lawsuits etc, I'm still confused about why its valuation makes any sense and would like to understand.
When the $DWAC SPAC merger passed today, Trump's paper net worth grew by $3.49 billion. Shares down over 10% since the merger passed, bringing the number down $363 million to $3.13 billion
The vote to take Truth Social public is a huge win and one of the most successful SPACs ever, but it doesn't immediately solve Trump's bond problem in New York. http://nymag.com/...