Trump Media & Technology Group

Digital World Acquisition Corp, the SPAC that plans to merge with former U.S. President Donald Trump's media and technology company, said this week it would return to investors $533 million raised for the deal, after some have already backtracked on $467 million of commitments. The development means the end of the so-called private investment in public equity (PIPE) transaction that would have delivered Trump Media & Technology Group (TMTG), the operator of Trump's Truth Social platform, $1 billion as part of its merger with Digital World. The eventual fate of Truth Social was seeded back in October 2021, when Trump Media & Technology Group (TMTG)—the platform’s parent company—announced its plans to merge with Digital World Acquisition Corporation (DWAC), a Miami-based company. The intent of the merger was for TMTG to go public via a SPAC (special purpose acquisition company) deal. The two companies had between 12 and 18 months to complete their merger. The deadline for the merger to close, which has been extended at least five times, is now scheduled for Sep. 8, 2023. A shareholder meeting has been scheduled for Tuesday (Sep. 5), in the hopes of garnering enough votes to extend the deadline by another year. If the vote fails, DWAC will be required by law to liquidate and return $300 million to its shareholders, leaving Trump’s company high and dry. DWAC’s shareholder base is made up largely of small-time retail investors, many of whom likely bought shares out of loyalty to Trump or his brand. The company is headquartered in Sarasota, FL.