June 15, 2024

Digital World Acquisition’s Merger with Trump Media & Technology Group Sparks Controversy and Interest Amidst Legal Issues and Political Uncertainty

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Trump Media and Technology Group Receives Nasdaq Listing Approval; Making a Billion-Dollar Wager on a Potential Second Trump Term

On Friday, the shareholders of Digital World Acquisition (DWAC) approved the SPAC’s proposed merger with Trump Media & Technology Group (TMTG). This company is responsible for Donald Trump’s Truth Social platform. The merger values TMTG at an enterprise value of about $1.1 billion at a transaction price of $10 per share. The combined company will soon trade under the ticker DJT, possibly as early as this week.

This merger has attracted significant attention due to high-profile legal issues, intense trading activity, and Trump’s recent win in the Republican primary. Many view this stock as a bet on Trump winning the US presidency in November 2024. Despite the challenging environment for de-SPACs, with past mergers over the last year averaging a -59% return, Digital World Acquisition’s stock has shown remarkable performance, rallying 111% year-to-date and closing at $36.94 on Friday, well above the offer price pre-merger.

Digital World Acquisition first IPO’d in September 2021 with a focus on technology. Despite facing challenges typical of de-SPAC companies, the potential merger with TMTG has generated significant interest among investors. To access the full article and continue following this story, sign up for a free trial of IPO Pro.

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