Palm Beach, Fla. (Associated Press)-Donald Trump’s new social media company and its special purpose acquisition company partners say that the partners have reached a $1 billion capital agreement with institutional investors.
The former president established his new company, Trump Media and Technology Group, in October. He announced plans for a new messaging app called “Truth Social” to compete with Twitter and other social media platforms that banned his use after the rebellion in the U.S. Capitol on January 6.
TMTG’s plan is to become a public company by merging with the publicly traded Digital World Acquisition Corp., which is a special purpose acquisition company whose sole purpose is to acquire a private company and list it.
Trump Media and Digital World’s press release on Saturday did not identify the identities of institutional investors. It said that after the merger of the two companies, the funds will come from a “diversified investor base.”
Digital World stated in a press release that the US$1 billion is higher than its possible investment of US$293 million (less expenses).
“I believe TMTG can effectively deploy this funding to accelerate and strengthen its business execution, including continuing to attract top talent, hiring top technology providers, and launch important advertising and business development activities,” said Patrick Orlando, CEO of Digital World Said at the meeting.
Trump is listed as the chairman of TMTG. If the combined company performs well, he will receive tens of millions of special bonus shares, providing the former president with billions of dollars in paper wealth.
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