247 Local Media247 Local Media

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    An Overview of Online Casinos vs Traditional Casinos

    December 8, 2022

    Types of Specialists for Erectile Dysfunction

    October 31, 2022

    When students’ basic needs are met by community schools, learning can flourish

    September 27, 2022
    Facebook Twitter Instagram
    • Home
    Facebook Twitter Instagram
    247 Local Media247 Local Media
    Subscribe
    • Home
    • Automotive
    • Business
    • CBD
    • Crypto
    • Education
    • Entertainment
    • Fashion
    • Finance
    • Health
    • Home Improvement
    • Law \ Legal
    • News
    • Shopping
    • Sports
    • Technology
    • Travel
    • Contact US
    247 Local Media247 Local Media
    Home»Business»Trump’s Truth Social merger deal on life-support as partner delays vote
    Business

    Trump’s Truth Social merger deal on life-support as partner delays vote

    By September 9, 2022No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Trump’s Truth Social merger deal on life-support as partner delays vote
    Share
    Facebook Twitter LinkedIn Pinterest Email
    Trump’s Truth Social merger deal on life-support as partner delays vote

    [ad_1]

    Truth Social’s hopes for a much-needed cash-infusion suffered a setback Thursday after the founders of a blank-check company were again forced to delay a vote on extending a merger agreement with Donald Trump’s site.

    The founders of Digital World, a special purpose acquisitions company, instead ponied up an additional $3 million to prevent the company from dissolving for three months. The new vote is slated for Oct. 10.

    The SPAC needs 65% of shareholders to agree to extend the deal by a year with the former president’s right-leaning social media site. The two agreed to merge last October, a month after Digital World launched its IPO.

    However, the deal has been in limbo after the Securities and Exchange Commission launched a probe late last year into whether Digital World’s founders possibly had advance knowledge of what it was buying before listing its shares — a violation of securities laws.

    Digital World CEO Patrick Orlando raised the $3 million from outside investors in exchange for options in the company that would come good if the merger with Truth Social goes through, sources said.

    Digital World’s founders can extend the deal for another 90 days after the three months are up by shelling out another $3 million into a shareholder account before the extensions run out if they never win the vote.

    The merger would net Truth Social $1.25 billion.

    Photo illustration of the Truth Social media platform.
    Truth Social has roughly 4 million members, almost all of which follow the former president.
    SOPA Images/LightRocket via Getty Images

    The SEC can continue investigating until the SPAC dissolves, a Digital World shareholder said.

    Shares of Digital World closed at $22.75 Thursday after having reached as high as $175 this year. The SPAC had an IPO of $10.

    Truth Social is reportedly hemorrhaging money and has been accused of not paying a key vendor. Last week, Google banned the app from its Play store because of shoddy moderation by the site.

    Digital World Acquisition logo
    Digital World wanted Trump’s support for the vote but didn’t get it.

    The site has about 4 million users, a fraction of the nearly 400 million who use Twitter.

    “Truth Social is continuing to grow rapidly, driven by extraordinary user engagement and the recent launch of ads on the platform,” a spokeswoman for the social media site told The Post this week.

    Trump had backed away from promoting Truth Social’s merger because insiders believe the embattled former president wanted to avoid another fight with the government, a source familiar with Trump’s thinking told The Post.

    He has said he doesn’t need the deal to go through for his site survive.

    “SEC trying to hurt company doing financing [Digital World]. Who knows? In any event, I don’t need financing, I’m really rich! Private company anyone???” he posted on Truth Social on Saturday.

    [ad_2]

    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Beyond Meat, Impossible struggle due to ‘woke’ perception: analysts

    September 26, 2022

    Developer hustles to build ‘Bustle’ in Penn Station area

    September 26, 2022

    Amazon rolls out second Prime Day this year for first time ever

    September 26, 2022
    Add A Comment

    Comments are closed.

    Editors Picks
    Recent Posts
    • An Overview of Online Casinos vs Traditional Casinos
    • Types of Specialists for Erectile Dysfunction
    • When students’ basic needs are met by community schools, learning can flourish
    • Walmart and Target Are Hiring 140,000 Seasonal Workers
    • 7 Ways to Get Affordable Dental Care for Adults and Children
    Archives
    • December 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • September 2021
    Facebook Twitter Instagram Pinterest Vimeo YouTube
    • Home
    © 2022 - 247 Local Media- All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.