Shares of the Trump-linked Digital World Acquisition Corp. are bouncing back after sliding earlier Monday when investors began pulling out of the stock.
RACHELLE AKUFFO: So my pick, DWAC. Now, the stock was staging, actually, a comeback after a massive slide today. That's after disclosing it's received termination notices from PIPE investors, that's Private Investment in Public Equity. And that accounted for about $138.5 million of its $1 billion investment proposed in December. Before that, though, it was down quite a bit. Bouncing back, though. It's up about 3 and 1/2% there. But down about 70% almost year-to-date.
Now, former President Trump's social media company was supposed to go public via SPAC and merge with Digital World Acquisition. But there have been, of course, a number of headwinds. "The Financial Times" reports that SPAC investors have been negotiating with DWA's CEO Patrick Orlando. They want better terms that would move the risk away from investors.
Now, DWAC already had to adjourn a shareholder meeting to October 10. That was after failing to get the necessary 65% of shareholders on board with the deal. Now, Trump Media Technology Group has also threatened to sue the SEC for delaying the merger with DWAC, accusing it of, quote, "obvious conflicts of interest among SEC officials and clear indications of political bias," end quote.
They also accuse it of stalling the deal's review and damaging investors. Now, there are still two three-month extensions. The first of which is coming up on December 8. DWAC, though, has warned that previously, without those deal extensions, the SPAC may be forced to liquidate, Seana. So want to keep an eye on there, but at least staging a comeback at least for this afternoon.
SEANA SMITH: Yeah, Rachelle, it's hard to make sense why the stock is actually up just over 3% today. You mention the fall year-to-date. At the highs of the year, it was trading just around $97 a share. Today, you can see it right around $17.
Certainly, a tough couple of months here for the company, also relating to Trump's potential acquisition there. It's being probed by the Justice Department. You mentioned some of the tie up there with the SEC. So they're going to have to navigate a number of hurdles that are out there in front of them. So it's very, very uncertain just in terms of what that potentially looks like here over the coming months.