In a highly anticipated event in the world of SPACs and digital media, Digital World Acquisition (DWAC) shareholders have approved the merger with Trump Media & Technology Group (TMTG), the company responsible for Donald Trump’s Truth Social platform. The merger values TMTG at an enterprise value of approximately $1.1 billion at a transaction price of $10. This move has garnered significant attention due to frenzied trading, high-profile legal cases, and Trump’s success in winning the Republican primary.
Amid a negative trend for de-SPACs, with mergers averaging a -59% return over the past year, DWAC’s stock has surged by 111% year-to-date and closed at $36.94 on Friday, well above the pre-merger offer price. The company originally went public in September 2021 with a focus on technology investments.
This approval marks an important step in the process as investors keep a close eye on the developments following the merger as they assess its potential impact on the market and broader political landscape. Trump’s involvement in this venture adds a layer of complexity and interest to this deal. The combined company will be traded under the ticker symbol DJT as early as this week.
The merger is seen as a bet on Trump potentially winning the US presidency in November 2024, adding more political intrigue to this already high-profile transaction.
In summary, Digital World Acquisition (DWAC) shareholders have approved their merger with Trump Media & Technology Group (TMTG), marking an important step in creating a new force in the digital media landscape. Investors are closely monitoring this development to assess its potential impact on both markets and politics.
