Investors flee and go public with a company that wants to merge with Trump’s Truth Social

Investors flee and go public with a company that wants to merge with Trump's Truth Social
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There’s more bad news for the company it’s set to merge with donald trump‘With truth social bring it to the public: Investors are starting to bail out.

Digital World Acquisition Corp. — the Special Purpose Acquisition Company (SPAC) that must take Truth Social public — revealed in a Filing with the Securities and Exchange Commission Friday that investors have withdrawn from commitments of $139 million of the $1 billion previously announced by the company.

There’s probably more to come. Investors who agreed to raise the money almost a year ago can now drop their commitments because Digital World missed its first Sept. 20 deadline merge with Truth Social.

DWAC is Extending the timeframe for the deal by three months after shareholders refused to approve his offer for a 12-month extension. But investors can still step down.

It’s just the latest trouble for Digital World and Truth Social.

A major vendor complained about this last month Truth Social bills weren’t paid. A major web hosting operator said truth social owed approximately $1.6 million in contractually agreed payments, a claim that suggests the operation’s finances were in “significant messFox business news reported.

In another throwback, Truth Social Registration of a trademark was rejected last month because his name was too similar to other operations.

Truth Social is hardly the juggernaut some investors were hoping for. The social media platform is largely a forum for Trump, who repeatedly posts messages promoting himself and reposts articles from right-wing media praising him every day.

Responding comments mostly relate to QAnon conspiracies, over-the-top pro-Trump and anti-Trump advocates.Joe Biden Memes and spasmodic comments like, “Ode to the Greatest President of All Time.”

Comments lack the back and forth of social media platforms like Twitter, which makes them more of a dialogue. Most of the negative comments on Truth Social will be buried or disappear from the page that organizers promised would be censorship-free.

Trump launched Truth Social after being booted from Twitter in the wake of January 1st. 6, 2021, U.S. Capitol riot. Trump has used the platform in a manner similar to Twitter — to rail against enemies, complain about being a victim, and falsely insist he won the 2020 presidential election.

Last month, Digital World issued a warning SEC Filing the existence A decline in Trump’s popularity could hurt business. The filing said that Truth Social’s success depends on the “reputation and popularity” of the investigation-plagued Trump, who heads the Trump Media and Technology Group, which owns and operates the social media platform.

“To be successful, TMTG will need millions of these people to register and use TMTG’s platform on a regular basis,” the filing warned. “If President Trump becomes less popular or there are further controversies that damage its credibility or people’s desire to use a platform associated with it,” the proposed merger with Digital World could “be adversely affected,” it warned.

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