Trump’s Truth Social may be days away from liquidation
Trump’s Truth Social may be days away from liquidation
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 vote for Tuesday to extend the deadline another year.
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. “Everyone asks me why doesn’t someone stand up to Big Tech? Well, we will be soon!” Trump said in a Trump Media statement that month.
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.
Digital World’s efforts to merge with Trump Media have been troubled almost from the start, beset by allegations that it began its conversations with the former president’s company before they were permitted under SPAC rules.
Then, in the past year, its issues became more pronounced: Its chief executive was terminated by the board, a former board member was arrested on charges of insider trading, and the company agreed to pay an $18 million settlement to resolve charges that it had misled investors and given false information to the Securities and Exchange Commission.
The merger has “been pretty much unprecedented in terms of all of the glitches,” said Jay Ritter, a University of Florida finance professor who studies stock markets. “The deal does seem to be running out of time. You can’t just keep getting extensions forever.”
Hold on.....
You mean to tell me that a Trump deal was shady from the start, a whole bunch of people involved in it are under investigation and facing criminal charges, and in the end a whole bunch of people are going to lose their shirts and another business will go bankrupt?
Surely you jest! This has never happened with any of Trump's transactions before!!!!!
Trumpsactions
Isn't that how all the young kids spell "failure" these days?
He posted his mugshot on Twitter. He knows he can't stay away forever. It calls to him like a siren.
Here is an alternative Piped link(s): https://piped.video/watch?v=s5bwBS27A1g
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Good and bad. Good because it is another public failure for Trump. Bad, because those idiots will now flood Twitter / X and reach even more gullible people with their lies.
Elon will be more than delighted to host him. :/
You think they were only on one platform?
Everything this guy touches turns to shit. Somehow he escapes himself.
Imagine if the banks, which bailed him out originally, just let him fail way back. Maybe we never would have had this timeline at all...
Have you seen the guy? I'd say he did not, in fact, escape his own Poodas touch.
Isn’t there Kompromat allegedly about him being into that though?
That would make him an Excremental.
You tend to be slippery when you're covered in shit
The Midas Touch of Shit at it again
Mierda's Touch!
Amazing how he has not been killed by a disgruntled business partner or investor yet
What are you talking about? With so many heads like yours in which he lives rent-free, he's the greatest real estate mogul who ever lived!
I'd ask you the same. Then I'd point to the fact others didn't have trouble understanding what I said. I think I've spent more time on this reply than my original comment.
I am Jack's complete lack of surprise.
I am Jack Dorsey’s shit-eating grin
The investors are all about to receive honorary degrees from Trump University.
Oh no. /s
"No reasonable person believes that a Twitter clone just for conservatives is a viable business any more" is what the Parler team said.
Especially now Twitter is just that.
This was a sketchy deal from the outset. Why would anyone think a new social media company could be successful. Twitter wasn’t even making a profit when Elon bought it - who would invest $300 million not only to try it again - but to only target less than half the people the other platform targeted.
Just a bad business decision no matter how you slice it.
Twitter became profitable for the first time in 2018 when it reported its first-ever net income of $1.2 billion for that year. This was followed by a second consecutive year of profitability in 2019, with total revenue of $3.4 billion and a net income of $1.4 billion, which was higher than expected by many analysts.
Twitter was making money before Elon bought it... The numbers that get thrown around now about how much money it's losing are because Elon saddled the company with the debt from his leveraged buyout. The insane yet somehow legal strategy of making the company payback the loan for it's own purchase.
Oh, no, such a shame. Wherever will their five users go now?
hexbear
Bless you
This is the least surprising news I’ve heard all day. But it’s very funny!
Watch the users somehow find a way to blame "woke left cancel culture" for this, instead of blaming the man who famously never pays his bills.
Whoa, hang on guys. This doesn't mean Truth Social is over, it just means the SPAC deal that was going to take it public might fall through.
If this fails, then they'll need some venture capital to keep running, and if that fails, then it'll be time to shut down.
There's a good chance Putin can scrape together another shell company with some phantom money and promise to pay everything off, thus restarting the clock.
Shocking...
Another failed Trump business...
Just shocking...
Is there a single word to describe the opposite of shocked?
I'm dekcohs, I tell you. Dekcohs!!!
Nonplussed.
I hate this word because its actual meaning is to be surprised and confused, and people use it more and more often to mean basically the opposite (I assume because the “non” makes “nonplussed” sound like a lack of something), and now the word’s two meanings coexist in opposition of each other, and I just have to use everything else to determine which meaning it is supposed to be.
I only know that word because Archer, but I feel like it doesn't quite capture the "no shit lmao" feels of what I'm going for.
Well
TwitterX itself was bleeding capital for years and years, so it makes sense that Truth with largely the same business model would do the same. That business model is just not sustainableIt's primarily a propaganda platform so I think it met it's aims. Trump made all his money there through other businesses, selling NFTs and mugshot merch to chumps.
He can walk away with all those profits and liquidate TS without a worry.
On paper, yes, but it's still a PR loss and not a good look. His followers obviously won't care, but it might tip some people on the fence, so that's a good thing.
Kbin has the best thumbnail replacements for the Washington Post, I swear.
https://kbin.social/media/cache/resolve/entry_thumb/18/fd/18fd6b8a9aafa39899ffc2dacdd487527833153edb165ee3f903201efbbdea08.png is what we got for this.If anyone is interested check out The Wandering Inn. I was confused as to how Erin (the main protagonist) related to Trump lol
That's the one I got too haha
Does anyone even know a single Truth Social user?
Russian propagandists?
Is the pee tape finally being released?
It's not a Pee tape. It's a P-tape.
The P is short for a word. Something something, Epstein didn't kill himself.
Pretty sure the P stands for peepee.
And a merry Epstein Didn't Kill Himself to you as well.
You love to see it
Following the way the angry cheeto do business it is not a surprise ro anyone that he failed again.
What a shame /s
This is the best summary I could come up with:
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.
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.
Trump Media has blamed the SEC for the deal’s troubles, saying in a statement last year that the agency had worked to “sabotage” the merger for political reasons with “a bureaucratic black hole of inaction.”
In filings dating back to its September 2021 IPO, Digital World executives said they had not participated in merger discussions with any companies when in fact they’d started speaking with Trump Media leaders months earlier, in violation of federal antifraud guidelines, the SEC said in the statement.
Though Trump Media projected in a 2021 investor presentation that the site would have 41 million total users by the end of this year, usage estimates from Similarweb, a data firm that analyzes web traffic, suggest it is a long way from reaching that goal.
On Aug. 24, after surrendering at an Atlanta jail on felony charges alleging he participated in a criminal conspiracy to overturn his 2020 election loss, Trump posted his first tweet in more than two years, including his mug shot.
The original article contains 1,940 words, the summary contains 236 words. Saved 88%. I'm a bot and I'm open source!
so it becomes a liquid or what? doesn't that make it worse
Does that mean Trump melts like the Wicked Witch of the West?
Maybe it wasn't ketchup running down the wall of the Oval
