Trump's Truth Social SPAC Merger Deadline Extended, Creating Suspense for a High-Stakes Deal

In a dramatic turn of events, Digital World Acquisition Corp. (DWAC) shareholders have voted to extend the deadline for the special purpose acquisition company (SPAC) to complete its merger with Trump Media & Technology Group, which owns the popular social media platform Truth Social.

The previous deadline of Friday was fast approaching, pressuring DWAC to either finalize the deal or liquidate and return the raised $300 million from its initial public offering to investors. However, with this latest extension, the SPAC now has another year, until September 8, 2024, to hammer out the intricate details of the merger.

This decision adds a layer of suspense to the high-stakes deal, which has faced numerous setbacks since its announcement in October 2021. The merger has been under scrutiny from both the Securities Exchange Commission (SEC) and the Department of Justice, with investigations related to securities laws.

Truth Social, the brainchild of former President Trump, has become his preferred method of communication since he was banned from other social media platforms, including Twitter. The platform's popularity soared after its launch and prompted fears that Trump's return to Twitter, especially during his anticipated 2024 presidential campaign, would devalue Truth Social.

Furthermore, some DWAC investors have grown anxious about the potential impact of Trump's mugshot being posted on a rival social media platform, X, which he did last month. As a result, a few investors have withdrawn their cash, fearing the fallout from such a move.

If the DWAC's merger with Trump Media succeeds, the media company would gain access to over $1 billion in cash from DWAC's institutional investors, including prominent hedge funds. The services agreement between the company and Trump stipulates that the former president controls a majority stake of 90% in Trump Media.

While Digital World's stock price has experienced fluctuations, it currently stands at $16.77 on Tuesday, representing a small increase of 1.6% from the previous day but down significantly from its peak of around $97 per share in March 2022.

With the fate of the DWAC-Truth Social merger hanging in the balance, the coming months will be filled with intrigue and anticipation. Will the investigations by the SEC and the Department of Justice impact the deal? How will Trump's presence on rival platforms influence the value of Truth Social? These questions and more will shape the outcome of this high-profile merger.