The social media platform created by former President Donald Trump, Truth Social, has recently been approved by the Digital World Acquisition Corporation for a merger last Friday.
According to reports, this can potentially boost Trump's net worth and help him with his need for funds for legal penalties, with Trump Social to start publicly trading as early as next week.
Despite Trump achieving his aspirations to create a legitimate social media platform, it faced significant challenges and lost a ton of money during its first year in 2023.
Truth Social: Merger with DWAC Approved to Go Public
(Photo: Mario Tama/Getty Images)
In this merger, the publicly traded Digital World Acquisition Corporation shareholders would become shareholders of the Trump Media & Technology Group (TMTG).
Hours after the merger, it was reported that DWAC's stock fell as much as 12 percent with this venture with Truth Social.
It is also an important time as Truth Social is known for losing money after nine months since its launch in 2022, and it was reportedly as much as $49 million in 2023.
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Trump to See Net Worth Soar with New Merger
Trump owns 79 million shares of the company, which, according to the New York Times, could help his net worth soar and generate cash flow despite current scrutiny.
Trump owes as much as $454 million in legal penalties, and selling his shares may help pay them off. However, he previously had a lock-up provision that prevented him from doing so, and in this new deal, Trump may ask the board to waive it and sell his shares in the company.
Truth Social and Trump's Online Return
In 2021, Trump faced a ban on all social media platforms, including Meta's Facebook and Instagram, Twitter, and more, because of allegations about his 'call to arms' for the Capitol attack.
However, that was the start of Trump's idea to create his social media platform where he would be free to interact with users and post what he wanted to say online.
That being said, his first attempt to do so, From the Desk of Donald J. Trump, was a WordPress blog, which saw significant backlash from the world, calling it a blog site instead of a social media.
After this, a legitimate social media called Truth Social was launched by Trump and his team, and this time, they got it right as it was a platform, but initially faced backlash as it allegedly stole Mastodon's code.
Facebook and Twitter both lifted the ban against Donald Trump but held him under probation on their platforms. X's Elon Musk welcomed back the politician despite the existence of Truth Social.
Trump's social media also cost him a lot of money, and this merger with DWAC is a way to save the platform and the former president himself from all his legal troubles.
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