This will be hard for you to believe, but former President Donald Trump's Truth Social platform might go the way of Trump Steaks, Trump Vodka, Trump University, Trump Ice, Trumped!, and the six casinos he filed for bankruptcy. According to personal financial disclosure reports in April, the Stable Genius made less than $201 from Truth Social. And now, the social media site is just days away from potential liquidation.
The Washington Post reports:
When former president Donald Trump's media start-up announced in October 2021 that it planned to merge with a Miami-based company called Digital World Acquisition, the deal was an instant stock-market hit.
With the $300 million Digital World had already raised from investors, Trump Media & Technology Group, creator of the pro-Trump social network Truth Social, pledged then that the merger would create a tech titan worth $875 million at the start and, depending on the stock's performance, up to $1.7 billion later.
All they needed was for the merger to close — a process that Digital World, in a July 2021 preliminary prospectus, estimated would happen within 12 to 18 months.
Now, almost two years later, the deal faces what could be a catastrophic threat. With the merger stalled for months, Digital World is fast approaching a Sept. 8 deadline for the merger to close and has scheduled a shareholder meeting for Tuesday in hopes of getting enough votes to extend the deadline another year.
If the vote fails, Digital World will be required by law to liquidate and return $300 million to its shareholders, leaving Trump's company with nothing from the transaction.
For Digital World, it would signal the ultimate financial fall from grace for a special purpose acquisition company, or SPAC, that turned its proximity to the former president into what was once one of the stock market's hottest trades. Its share price, which peaked in its first hours at $175, has since fallen to about $14.
Save the date. We might be able to watch Truth Social crash and burn on Sept. 8.
Digital World completed its IPO on Sept. 8, 2021, and set a "termination date" for when the merger would be completed one year later, it said in SEC filings. Then, last August, Digital World said in a filing that the board believed it did not have sufficient time to complete the merger and asked shareholders to approve up to four three-month extensions.
Twitter users piled in:
A shoutout to our massive super secret group who took over the site and shit all over Trump supporters. I'll miss you guys when it folds. On to the next! BMC 4 ever:)
