After losing the election, the former American president announced the creation of his own social networking site. His company has just boasted about new financing.
After the suspension of Twitter, Facebook and YouTube accounts, Donald Trump was convinced that the creation of an independent website was necessary for his message to reach the wider public. Trump had 89 million followers on Twitter, 33 million on Facebook, and 24.5 million on Instagram (together with FB they belong to Meta) when it was blocked – according to the presentation on his company’s website.
There is no doubt that the intense efforts in recent months to make the vision of a new social platform a reality are related to Trump’s likely run in the next presidential election.
The desire of the current president, Joe Biden, has already been announced by White House spokeswoman Jen Psaki. Although there is still a lot of time until the elections of 2024, preparations for the fight for voters’ votes, including the one on the Internet, are in full swing.
For this purpose, Donald Trump established the Trump Media & Technology Group (TMTG) company, which is the owner of the Truth Social website being created. The next step was to introduce it to the stock exchange. The merger with the Nasdaq-listed company Digital World Acquisition was to serve this purpose. The information about the planned takeover, announced on October 20, meant that the shares of the acquired company grew by over 1600 percent in two days. at gigantic revolutions.
On Friday, October 22, more trading took place only in Tesla shares. The stock was trading at $ 175 at its peak. The price from Friday’s closing was “only” less than $ 45. Before all the frenzy, the shares cost around $ 9.
Last week, the company announced that it had entered into contracts to acquire about $ 1 billion from a group of institutional investors. The statement issued by TMTG did not, however, indicate the investors in question. It only says that it is a diversified group.
The takeover itself aroused controversy due to the form of its implementation. Digital World Acquisition (DWAC) is a special purpose company created to raise capital for an acquisition and allow the acquired company to go public. DWAC debuted on the stock exchange in September this year, but as reported by the Times, talks between entities (Trump Media and DWAC) were already underway in March this year. By law, DWAC should not have planned such a merger prior to its IPO because this could lead to deliberate listing through the back door without proper scrutiny. Senator Elizabeth Warren has asked the SEC to investigate the merger, according to Yahoo. However, the overseer did not say whether he would take any action.
Truth Social is set to be fully launched in the first quarter of 2022. This is the first of three steps in the Trump Media plan, which will be followed by a video-on-demand service called TMTG +, which will include entertainment, news and podcasts, the Trump Media press release reads.
“$ 1 billion is an important message to Big Tech that censorship and political discrimination must stop. America is ready for Truth Social, a platform that will not discriminate on the basis of political ideology. TMTG will be in a stronger position to fight the tyranny of Big Tech, said Donald Trump.
The initiative of his own portal does not prevent the former president from seeking his case in court. Trump’s lawyers have applied to court to unblock accounts that were suspended after the January 6, 2021 riots in Washington.