Trump eyeing $3B stake as DWAC shareholders approve merger
Shareholders of Digital World Acquisition Corp. (DWAC) approved a merger with Trump Media & Technology Group, owner of the Truth Social platform. With the approval, former President Donald Trump will now have a more than 50% stake in the combined entity — valued at over $3 billion — while also being subject to a lockup period.
Editor's note: This post has been updated to show that Digital World Acquisition Corp. shareholders approved the merger agreement.
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Note: This article was written by Angel Smith and updated by Luke Carberry Mogan.
Video Transcript
- Well, let's take a look at another trending ticker that we're watching, and that's Digital World Acquisition Corp. Now shares are moving higher in the premarket, up just about 3%. Shareholders getting set to vote on whether or not to merge with Trump Media and the technology group, the company behind Truth Social.
Now, if accepted, former President Trump would have a 58% stake in the merged company. Now this has been a long time coming. The reverse merger agreement--
- You're telling me.
[INTERPOSING VOICES]
- It feels like we have been talking about this forever. It was first announced back in October of 2021. So we've been talking about this for just about two and half years. The significance though of this, obviously, it could potentially be a big payday for Trump. We mentioned that 58% stake that he would have in the merged company. It would be worth more than $3 billion. So it could help him maybe resolve some of his financial issues, but again, DWAC a trender to watch today. And certainly, look at that pop there since January moving to the upside in the last couple of months.
- Yeah, I'm seeing that Trump is set for a payout of $3.4 billion. There's got to be other incentives in there too, but it just shows you how much is on the line here. And a real quick at the Wi-Fi interactive. We can go to that chart real quickly.
This is since inception, and this is a SPAC. So it came to market at $10 a share. Got a lot of interest way back in 2021 initially, had a second top here. And this stock looks like a biotech, and sometimes it happens with SPACs because you're waiting on decisions and votes to be made, but just a very volatile trading instrument here.
