Shareholders of Digital World Acquisition (DWAC), the special purpose acquisition taking former President Donald Trump’s tech and social-media platform public, approved Friday the long-awaited merger with Trump Media & Technology Group. DWAC shares fell after the vote.
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DWAC stockholders voted in favor of the special purpose acquisition company’s merger with Trump Media Friday. Meanwhile, Trump is having trouble securing a nearly half a billion dollar bond to appeal his $454 million civil business fraud judgment.
DWAC is now taking Trump Media and Technology Group (TMTG) public in a reverse merger. Trump Media is the parent of the conservative social-media platform Truth Social.
With shareholders approving the merger, TMTG will be a wholly owned subsidiary of Digital World. DWAC is expected to change its name to Trump Media & Technology Group, according to regulatory filings. Trump’s stake in TMTG is valued at more than $3 billion, based on DWAC’s current stock price.
DWAC stock advanced early before falling 13.9% to 36.86 during market action Friday. On Wednesday, DWAC shares surged 17.8%.
Truth Social launched after Twitter, now X, shut down Trump’s account following the Jan. 6, 2021, riot at the U.S. Capitol.
In October 2021, Truth Media and DWAC announced their plan to merge. Federal investigations have delayed the proposed merger for years. However, on Feb. 14, DWAC announced the U.S. Securities and Exchange Commission (SEC) proclaimed the merger’s registration statement was effective, approving the proposed combination to go forward.
Trump And DWAC Stock
The Donald Trump brand and the value of DWAC stock are closely related. Trump’s current status as the top Republican candidate for president figures squarely into the stock’s gains so far this year. Federal charges could potentially tarnish that brand, according to company filings, although so far that has not been the case.
Ahead of Wednesday trade DWAC had fallen more than 11% in March. Before Friday, DWAC stock was up 4% in March and had jumped above the 50-day moving average, according to MarketSurge analysis.
However, after Friday action DWAC shares are now down more than 10%.
DWAC stock is up around 130% in 2024 as TMTG is now set to go public and with Trump looking like he will be the GOP’s presidential nominee.
DWAC stock is down around 80% from its Oct. 22, 2021, high of 175, marked just after news of the Trump merger deal broke.
DWAC stock has a 41 Composite Rating out of a best-possible 99. Shares also have a perfect 99 Relative Strength Rating and an EPS Rating of 2.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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