• Federal regulators and prosecutors are currently looking into the deal.
• On October 20, Trump Media and Digital World reached a merger agreement.
• Shares of Digital World increased by as much as 350%.
Trump Updates: Staff at a Miami investment business were informed of a planned merger between the former president Donald Trump’s social network company and a blank check company long before it was made public, according to three people involved in the conversations. According to the NYT, which cited two sources, representatives of the company Rocket One Capital at the time discussed ways to make money off the soon-to-be-announced transaction with Trump Media & Technology Group by investing in the SPAC, Digital World Acquisition Corp.According to the article, which relied on sources familiar with the inquiry and public disclosures, federal prosecutors and regulators are currently looking into the merger, particularly the irrational trading in the SPAC’s warrants.
Truth Social’s developer, Trump Media & Technology Group, decided to merge with Digital World on October 20. The transaction was anticipated to close in the second half of this year.A day after the deal was made public, shares in Digital World jumped by as much as 350 percent.
Requests for comment from Reuters were not immediately answered by Trump Media or Rocket One Capital. A Trump will have to wait six hours before reposting his messages from the social media site Truth Social on other platforms, according to a regulatory filing made public on Monday. This was previously reported in May.After the former US president was banned from Twitter, Facebook, and YouTube for allegedly encouraging and praising violence during the riots on January 6, the platform was established with the goal of taking on Big Tech.Trump Media & Technology Group (TMTG), the parent company of Truth Social, will become publicly traded thanks to DWAC, a special purpose acquisition company. In a statement filed with US regulators, DWAC stated that it anticipates the transaction to close in the second half of 2022.Trump is free to accept any offers for new video projects, but TMTG has the right to reimagine a similar programme for its subscription video service TMTG+ and must compensate him for exclusive content for customers, according to the statement.