Trump social media SPAC stock falls after the board was subpoenaed
Yahoo Finance Live anchors discuss Digital World Acquisition Corp. receiving subpoenas over Trump’s social media SPAC plans.
Video Transcript
- Another mover that we are watching here quickly, digital world acquisition group DWAC, the shell company said to bring former president Trump's social media firm public via SPAC, it's landed in hot water with the Securities and Exchange Commission. Federal prosecutors issuing subpoenas for Digital World's' board of directors, every single one of them, casting another shadow over the deal.
This has already been something that's sort of drawn into question. What's it called again? Media social, Truth Social. Gosh, I already forgot it's even a thing because it seems like it's not super popular, Trump.
- Media and Technology Group. Full name, and then Truth Social, the subsidiary, as well as some other offshoots that they were going to be doing. We haven't heard anything about truth news and what was going to come forward there.
But particularly here within these subpoenas, what's most damning perhaps right now, they're expected to delay the effectiveness of this registration statement and could materially delay, impede, or prevent the consummation, they're saying, of the business combination. So a deSPAc of a deSPAC, if you will.
- Is this a real company?
- I don't know. I mean, a lot--
- The market doesn't know either.
- One of these deals have come under scrutiny, right? When the SEC increases regulation, changed its rules. So that's not uncommon. But this then seems to be another layer on top of that, right? That this is another layer of increased scrutiny.
Also, one of the members of the board just resigned. It's the Rocket One chief strategy officer Bruce Garelick. Maybe he just didn't want to deal with all this stuff. Maybe, who knows if he knew the subpoena was but, you know, this was a meme stock, right? And now maybe all those people who piled in not going too well.
- There's already users that have said that they were censored by Truth Social as well.
- No.
