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By Naveen Athrappully(Epoch Times)
A potential merger involving former President Donald Trump’s social media platform Truth Social can take the company public and will give him access to $3.5 billion in funds—a deal which his political rivals are looking to thwart.
On Feb. 14, the U.S. Securities and Exchange Commission (SEC) approved the merger between Digital World Acquisition Corp. (DWAC) and Trump Media & Technology Group (TMTG). TMTG is the owner of social media platform Truth Social. Once DWAC merges with TMTG, it can go public, with President Trump holding 78.75 million shares in the combined entity. DWAC shares were trading at around $45 as of 1:45 p.m. EST on Feb. 27, indicating that President Trump’s stake in the new entity could be worth $3.5 billion.
The amount can be a substantial cash infusion for the former president who has been charged with a $355 million fine two weeks ago by a New York judge in a civil fraud ruling. Adding in interest, the final amount comes to $464 million.
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With the SEC nod, all that is left for the merger to be completed is shareholder approval. DWAC has scheduled a shareholder vote on the merger for March 22. A SPAC merger usually closes within a few days after getting the approval.
However, the merger is facing Trump-related risks. DWAC said in a Feb. 16 filing that the merger may be delayed by third parties. Political opponents of President Trump could seek to block the merger to prevent his “potential financial gain,” DWAC said.
The focus of the $464 million lawsuit was the annual statements of The Trump Organization, which the New York Supreme Court said inflated values of President Trump’s assets. However, his defense pointed out that no harm was done through the transactions with no victims.
On Feb. 26, Trump attorneys appealed the ruling. The court can potentially put the $464 million ruling on hold while the appeals process is carried out, which could last a year or more.
“The New York State CONSPIRACY (WITCH HUNT!) against Crooked Joe Biden’s Political Opponent, ME, is the greatest and most dangerous Political HOAX in the history of our Country!” President Trump said in a Feb. 26 post at Truth Social.
The ruling against President Trump has been heavily criticized. During an interview with CNN, businessman Joe Lonsdale said that the U.S. government is being weaponized against President Trump.
