Truth Social gets an extension in Digital World deal: reports

Investors voted Tuesday to give the blank check company attempting to take Truth Social public another year to finalize its merger with former President Trump’s media startup, according to reports.

Shareholders in Digital World Acquisition Corp. (DWAC) granted the company a 12-month extension to close the deal with Trump Media & Technology Group (TMTG), just days before its Sept. 8 merger deadline, Axios reported.

This is the company’s second yearlong extension.

If the extension vote had failed, DWAC would have been required to liquidate and return the $300 million it raised to shareholders, according to Reuters

“Thank you for all of the outstanding support,” DWAC CEO Eric Swider said in a Truth Social post Tuesday. “Please understand my silence. We remain focused on the task at hand and are watching every word we say.”

The merger between DWAC and Truth Social’s parent company has been troubled.

The Justice Department announced charges against a former DWAC board member and two others in June for insider trading related to the merger, and the company agreed to pay an $18 million fine to settle fraud charges with the Securities and Exchange Commission in July.

DWAC and TMTG did not respond to The Hill’s requests for comment.

Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top