Trump-themed stock DWAC passes the critical stage of merger with Truth Social

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The Special Purpose Acquisition Company (SPAC) Digital World Acquisition Corp. (DWAC), known as a 'Trump-themed stock' that surged dramatically, has passed the crucial final stage for a merger. If the merger is finalized, it is expected to give a significant boost to the social networking service (SNS) election campaign for former President Trump, who is aiming for re-election this year.

On the 16th (local time), major foreign media including Bloomberg reported that DWAC, a Nasdaq-listed company, received approval from the U.S. Securities and Exchange Commission (SEC) for its merger application with Trump Media & Technology Group (TMTG), the operator of the SNS 'Truth Social.' The merger will be finalized once it secures a majority vote at the upcoming DWAC shareholders' meeting.

Truth Social was founded by former President Trump after he was permanently banned from major SNS platforms such as Facebook and Twitter (now known as X) following the 2021 Capitol riot.

Although the SPAC merger had been delayed for over two years due to various regulatory issues, the news of merger approval caused DWAC's stock price to close up 16% that day. DWAC's stock price has risen 189% since the beginning of this year. This surge began after former President Trump achieved overwhelming victories in the Republican caucuses held last month in states including Iowa.

Once the SPAC merger is completed, it is expected that the Truth Social business will accelerate. With smoother fundraising, there is analysis that the political messages posted by former President Trump on the SNS will gain greater influence. Truth Social incurred losses of $73 million (approximately 96 billion KRW) up to the first half of last year since its launch in February 2022.

DWAC recently replaced its board of directors to reorganize its business. The new board includes former officials who served in the Trump administration, Robert Lighthizer, former U.S. Trade Representative, and Linda McMahon, former Small Business Administration head and former CEO of World Wrestling Entertainment, Inc.

Meanwhile, other Trump-themed stocks also closed higher on the same day. The stock prices of Rumble (RUM), a conservative content-sharing platform, and Phunware (PHUN), a software company that designed the app for Trump's 2020 campaign, rose 6.7% and 1.6%, respectively.

This content was produced with the assistance of AI translation services.