Shares of Truth Social Merger Partner Drops After Trump’s Candidates Fail in Midterm Election

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This photo illustration shows an image of former President Donald Trump next to a phone screen with the Truth Social app in Washington, DC, on February 21, 2022.

Stefani Reynolds | TBEN | Getty Images

Shares of the blank-check company that would take over Trump Media and its Truth Social platform fell sharply on Wednesday after candidates endorsed by the former president were disappointed in high-profile midterm elections.

Digital World Acquisition Corp.Shares fell more than 20% Wednesday morning.

In Pennsylvania, Trump-approved Senate candidate Dr. Mehmet Oz of Democratic Lt. Governor John Fetterman, NBC News reported, what cost the Republican party a Senate seat. In Michigan, Tudor Dixon lost a gubernatorial race and Kristina Karamo lost her bid to become secretary of state. Both were supported by Trump.

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On the weekend before the election, Trump held large rallies where he read out a list of Republican candidates. He also helped raise hundreds of millions of dollars for Republican candidates in a high-profile Senate campaign.

The rallies also served as a platform for Trump to seemingly hone a speech that sounded like his own bid for the 2024 presidential campaign. On Monday, DWAC’s shares skyrocketed on Trump’s hint of another presidential run.

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Another presidential run could drive traffic to Trump’s Truth Social platform, as the ex-president has agreed to post exclusively on the social media platform for eight hours before posting elsewhere.

Still, DWAC’s stock has fallen sharply so far this year as the special-purpose acquisition company faces financial and legal challenges in its pursuit of a merger with Trump Media and and Technology Group, the parent company of Truth Social.

DWAC has been working to gain enough shareholder support to extend the TBEN for the Trump Media merger to September 2023, with the vote rolled back several times. It will take place again on November 22.

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The merger also faces a criminal investigation into possible securities violations over discussions that took place between DWAC and Trump Media prior to the deal’s announcement.

The delays have resulted in at least $138 million of $1 billion in investments being withdrawn from DWAC. The ex-president himself has also suggested that the SPAC merger may not go through. At an October rally in Michigan, Trump told supporters that if the funding didn’t come through, he would take it private.

– TBEN’s Jack Stebbins contributed to this article.