Truth Social, the upstart social media network blessed and used exclusively by former President Donald Trump, secured a major victory via a vote by shareholders to take the company public.
According to Axios, shareholders in blank-check acquisition company Digital World Acquisition Corp. (DWAC) will have another 12 months to complete a merger with Trump Media & Technology Group, the organization behind Truth Social. The extension of a window to complete the deal is a major victory for President Trump who stands to benefit lucratively if the company, launched in the months following his suspension from Twitter, goes public. President Trump has 55 percent voting power in his company and is believed to own nearly all of it.
DWAC went all-out ahead of the deal, using Truth Social to appeal to users and non-shareholders to petition its owners to grant the company a second year to take a bite at the apple with Trump. Had the deal failed, Truth Media & Technology Group would have been under significant duress to find another deep-pocketed suitor before running out of funding. Should a deal be reached, Trump’s media company will likely receive hundreds of millions of dollars in funds to expand and raise its profile against more established social media companies like X, which rebranded from Twitter under new owner Elon Musk.
To reach a deal, DWAC needs to put a few setbacks in the rearview mirror, including a recent $18 million settlement with the Securities and Exchange Commission alleging it misled investors. The company has not been timely about filing its quarterly reports, another process that regulators may require to be improved before a deal with Trump.
The original deal also stipulated that “ownership and position in the Company shall be structured in such a way as to eliminate the need for restructuring of ownership or changes in position were a Material Disruptive Event (MDE) to occur.” The MDE in this case includes President Trump being convicted of a felony after the deal closes, and the terms of the deal would be favorable to him were he to lose one of the four criminal indictments pending against him.
While the Republican leader has many reasons for sticking to Truth Social, the allure of X under Musk remains hard to ignore. The businessman has openly appealed to Trump to return to the platform which benefited him greatly during his successful run for the White House in 2016 and throughout his first term. Shortly after his arraignment in Georgia on election interference charges, President Trump posted his mugshot on X, the first post since ones made before his permanent suspension in 2021 under the company’s previous owner.