A billion-dollar deal to take the company public is likely to move forward with the return of Donald Trump’s alternative Twitter app to the Google Play Store.
shares of Digital World Acquisition Corporation (DWAC), a special purpose acquisition company (SPAC), rose after hours as Google allowed the Trump-backed social media site back onto its platform.
But the hype is unlikely to last as the SPAC position faces much greater headwinds.
A year ago, a blank check company was formed to raise capital in the public markets and publicize Truth Social’s parent company, Trump Media and Technology Group (TMTG). The deal has been delayed several times over the past few months, causing a number of financial and legal problems.
A Brief History
October 21, 2021: DWAC stock surged
00% on online forums like Reddit’s WallStreetBets and Stocktwits, making it a self-pick
New York Times 10/20/29: Article failed to report DWAC going public at TMTG May . -October 2021 negotiations with SEC
11/17/2021: Senator Elizabeth Warren writes to SEC asking authorities to investigate. did DWAC “engage in securities violations”
22 February 2022: DWAC shares rise nearly 30% in pre-market trading as Truth Social debuts on Apple’s App Store
30 June 2022: TMTG has been subpoenaed as part of a criminal investigation, its company published via DWAC
August 30, 2022: Google bans app for ‘inadequate’ tracking practices. Apple’s requirements to remove an app from the app store are getting tougher, but Apple still allows it.
10/10/2022: DWAC postpones AGM to 3 November due to lack of support for 12 month extension. This is not the first time it has been delayed.
October 12/2022: Truth social returned to Google Play Store
“One day or another this company will go bankrupt. I don’t think the SEC will approve the company.” -William Wilkerson, a senior executive who worked at Truth Social and later became a whistleblower, alleging security violations related to the DWAC-TMTG merger. withdrawn
: How many times DWAC CEO Patrick Orlando used his executive power to delay and postpone the meeting
5: How many times the SPAC was suspended on the first day of its public debut due to volatility
65% : Digital World Acquisition corp. shareholders had to approve the extension.
8 weeks: the time before the DWAC deadline on December 8 – unless shareholders vote for an extension.
The Impact of Twitter on Social Truth
Trump made Truth Social after he launched Twitter on January 6, 2021 after the Capitol riots. His million followers on the new platform pale in comparison to the 80 million he has amassed on Twitter.
As Elon Musk moves closer to buying Twitter (again), access to Trump’s account is also being restored on Musk’s orders. That’s why DWAC shares a slide on business news from Twitter.