4.9 C
New York

Trump Media Gets 2 More Days to Save Its Merger Plan

Published:

The long run of former President Donald J. Trump’s social media platform stays doubtful after a cash-rich company it had hoped to merge with announced on Tuesday that it needed a pair more days to get shareholder support to increase the deadline for completing the deal.

Digital World Acquisition Corporation had scheduled a gathering Tuesday to announce the final result of the shareholder vote to increase the deadline for completing the merger by one other yr. But moments after the meeting began, Patrick Orlando, Digital World’s chief executive officer, announced he was adjourning the meeting to Thursday to permit more time for investors to vote.

If the special purpose acquisition company, or SPAC, cannot get 65 percent of shareholders to approve the extension, it can be forced to liquidate and return to shareholders the nearly $300 million it raised in an initial public offering last September. The liquidation may also mean that some three dozen hedge funds that had committed to providing $1 billion in additional financing is not going to should give you that money.

The potential collapse of the deal raises questions on the long run of Trump Media & Technology Group and its flagship social media app, Truth Social, the Twitter-like platform that Mr. Trump backed after Twitter barred him from posting following the Jan. 6, 2021, attack on the Capitol.

Digital World, which went public a yr ago, had given itself until Sept. 8 — Thursday — to finish a merger with one other company. Dual investigations into the deal by federal prosecutors and securities regulators have bogged down the merger and led to the delay.

Without the money infusion from Digital World, Trump Media might have to boost additional financing or find one other merger partner.

Meanwhile, considered one of Trump Media’s principal business partners, Rumble, is moving closer to completing its own merger with a SPAC. On Sept. 15, CF Acquisition Corp. VI, is scheduled to announce whether its shareholders have approved a merger with Rumble, a web-based video platform that provides a conservative alternative to YouTube.

After the announcement, shares of Digital World were down about 15 percent, to $21 a share.

sportinbits@gmail.com
sportinbits@gmail.comhttps://sportinbits.com
Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles

spot_img

Recent articles

spot_img