In a significant development in the tech and media landscape, Truth Social, the social media platform launched by former President Donald Trump, is on the verge of going public. The much-anticipated move comes after shareholders of Digital World Acquisition Corp. (DWAC), a blank-check company, gave their seal of approval to a merger with Truth Social’s parent company, Trump Media & Technology Group.
This decision marks a crucial milestone not only for Trump but also for the broader social media industry. The approval injects billions of dollars into Trump’s net worth, although he is subject to a six-month lockup period during which he cannot sell any shares.
The path to this merger has been anything but smooth, characterized by a multiyear saga involving legal battles, including civil and criminal lawsuits, as well as various extensions and postponements. A recent twist saw DWAC suing its former CEO, Patrick Orlando, in an attempt to secure his vote in favor of the merger amid an ongoing compensation dispute.
Trump Media & Technology Group’s financials reveal a $49 million net loss on revenue of $3.38 million for the first nine months of 2023. Despite this, the merger approval signifies a transition as DWAC will effectively cease to exist, paving the way for Trump Media & Technology Group to debut on the Nasdaq.
The new entity’s board of directors will boast notable figures, including Donald Trump Jr. and several former members of the Trump White House. Additionally, former Rep. Devin Nunes (R-Calif.) is set to take the reins as CEO of Trump Media & Technology Group, ushering in a new era for the company.