Digital World Acquisition Corp. (DWAC) SPAC stock jumped 400% on news of Trump social media platform

Final evening, former President Donald Trump introduced a brand new social media platform enterprise known as Trump Media & Expertise Group. The corporate made some information within the inventory market at present as they introduced a merger with Digital World Acquisition Corp. Shares of the beforehand minuscule special-purpose acquisition firm (SPAC) soared over 400% at present on the information.

As we speak’s merger values Trump Media & Expertise Group at $875 million with an opportunity at an extra $825 million earnout valuing the mixed entity at $1.7 billion. The corporate plans to function utilizing funding supplied by DWAC’s current $293 million in money holdings. The corporate introduced a brand new app known as TRUTH Social that shall be launching subsequent month, and has plans for a subscription video on demand platform named TMTG+.  “TMTG+ will characteristic ‘non-woke’ leisure programming, information, podcasts, and extra,” in keeping with at present’s announcement. Within the press launch saying the merger, the corporate acknowledged that “Trump Media & Expertise Group’s mission is to create a rival to the liberal media consortium and combat again in opposition to the ‘Huge Tech’ firms of Silicon Valley, which have used their unilateral energy to silence opposing voices in America.”

Former President Trump, who truly misplaced to Joe Biden final 12 months in the newest presidential election, had this to say:

“I created TRUTH Social and TMTG to face as much as the tyranny of Huge Tech. We reside in a world the place the Taliban has an enormous presence on Twitter, but your favourite American President has been silenced. That is unacceptable. I’m excited to ship out my first TRUTH on TRUTH Social very quickly. TMTG was based with a mission to present a voice to all. I am excited to quickly start sharing my ideas on TRUTH Social and to combat again in opposition to Huge Tech. Everybody asks me why doesn’t somebody stand as much as Huge Tech? Nicely, we shall be quickly!”

There definitely is loads to unpack right here, however the focus of at present’s information is to level out the insane bounce in share worth of this newly-formed social media firm. Practically half a billion shares of DWAC have traded at present. The inventory closed yesterday at $9.96/share and is now buying and selling over $56.93/share in afterhours buying and selling. In a inventory market that just lately valued Fb at over $1 trillion, I suppose $1.7 billion is sensible? There are in all probability a number of supporters of the previous president and his new platform on the market to maintain shares operating, however it is extremely exhausting to evaluate the present valuation with no actual concept concerning the firm’s future income or revenues.

It definitely seems {that a} new meme inventory has risen and drawn the eye and ire of merchants on Wall Road at present. Readers can join the TRUTH Social invite checklist, if they’re so inclined, on the app’s official website. Some of us could keep in mind that the impeached former president has been banned from Twitter and Fb following his position in inciting the failed January 6, 2021 coup at Capitol Hill. 

Unsure what else to say about this one, of us. Are you shopping for shares of DWAC on this information? Do you assume this can be a unhealthy concept and the corporate’s administration ought to really feel unhealthy? Do you assume SPACs are dumb? Tell us within the Shacknews Chatty feedback thread under. We actually need to hear your opinion.

This text is barely meant for instructional functions, and shouldn’t be taken as funding recommendation. Please contemplate your personal funding time horizon, threat tolerance, and seek the advice of with a monetary advisor earlier than appearing on this data.