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Stocks Dive For Truth Social SPAC Amid Merger Delay

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In yet one more troubling development for Donald Trump’s Truth Social media platform, stock values have taken a dive for the special purpose acquisition company (SPAC) that Truth Social is speculated to merge with to go public.

CNBC reports that prices have fallen 16% this month, including an 8% dip Monday, after investors apparently got jittery a couple of delay within the planned merger of the SPAC — Digital World Acquisition Corp. — with Truth Social’s owner, Trump Media & Technology Group.

Stocks were trading at $25.32 a share Monday, down significantly from their 2022 peak of about $97, in accordance with CNBC.

The most recent development follows news that Truth Social is grappling with other money and trademark issues as Trump deals with various personal legal problems.

RightForge, a serious web-hosting operator, claimed last week that Truth Social owes some $1.6 million in contractually obligated payments, reported Fox Business.

In one other setback this month, Truth Social’s application for a trademark was turned down. The U.S. Patent and Trademark Office found that Trump’s company name was “confusingly similar” to other entities.

Digital World, already being investigated by the SEC over business dealings, also delayed its earning report earlier this month and warned in a filing last week that a dip in Trump’s popularity could hurt the business.

The Washington Post has reported that Truth Social’s U.S. audience has plunged to about 300,000 views a day, down from nearly 1.5 million when it launched.

The location is basically a platform for Trump, with heavy censorship, researchers and critics have found. Detractors say users are higher served on competing right-wing social media sites like Telegram, Parler and Gab where there may be a greater sense of a developed community with more discussion.

Trump has posted quite a lot of messages on Truth Social calling all negative details about his company within the media “fake news.” He has also posted messages asking people to affix the location.

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