Truth Social is going public

Cath Virginia / The Verge | Photos from Scott Olson, Getty Images

Shareholders of the Digital World Acquisition Corporation approved a long-awaited merger with Truth Social, erstwhile President Donald Trump’s beleaguered societal media app, connected Friday — perchance boosting Trump’s nett worthy by $3 billion.

As a effect of the merger, shareholders of publically traded DWAC volition go shareholders of the Trump Media & Technology Group (TMTG), the genitor institution down Truth Social. Trump’s media institution volition statesman trading connected the Nasdaq nether the awesome DJT arsenic aboriginal arsenic adjacent week, The Associated Press reports.

Trump owns astir 79 cardinal shares successful the company, meaning the merger could springiness him a much-needed inflow of cash. The erstwhile president owes much than $454 cardinal successful ineligible penalties. But a alleged “lock-up” proviso prevents him from selling immoderate of his shares oregon utilizing them arsenic collateral of a indebtedness for six months, though The New York Times notes that helium tin inquire the committee of the recently merged institution to waive the regularisation for him.

In the hours aft the merger was announced, DWAC’s banal fell by arsenic overmuch arsenic 12 percent. The institution down Truth Social has been bleeding money since the level launched successful 2022. Trump’s media institution lost $49 million during the archetypal 9 months of 2023, according to an Axios study from January.