Shares Plunge To Truth Social SPAC Amid Merger Delay

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In yet another troubling development for Donald Trump’s Truth Social media platform, stock values ​​have taken a plunge for the special acquisition company (SPAC) that Truth Social would have to merge with to go public.

TBEN reports that prices have fallen 16% this month, including an 8% drop on Monday, after investors apparently became nervous about a delay in the planned merger of the SPAC – Digital World Acquisition Corp. — with Truth Social’s owner, Trump Media & Technology Group.

Shares traded Monday at $25.32 a share, significantly below their 2022 peak of about $97, according to TBEN.

A Monday filing from Digital World said Tuesday would vote for a year-long delay in the merger. The current TBEN to make Trump Media public is September 8, but Digital World has warned it could be forced to liquidate if the TBEN is not extended. The company noted in a previous filing with the Securities and Exchange Commission that it lost $6.5 million in the first half of the year.

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The latest development follows news that Truth Social is grappling with other money and trademark issues as Trump deals with several personal legal issues.

RightForge, a major web hosting provider, last week claimed that Truth Social owes approximately $1.6 million in contractually-mandated payments, TBEN Business reported.

In another setback this month, Truth Social’s trademark application was rejected. The US Patent and Trademark Office found that Trump’s company name was “confusingly similar” to other entities.

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Digital World, which is already under investigation by the SEC over business dealings, also delayed its earnings report earlier this month, warning in a filing last week that a dip in Trump’s popularity could hurt the company.

The Washington Post has reported that Truth Social’s US audience has fallen to around 300,000 views per day, up from nearly 1.5 million when it launched.

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The site is largely a platform for Trump, with heavy censorship, researchers and critics have noted. Opponents say users are better served on competing right-wing social media sites such as Telegram, Parler and Gab, where there is a greater sense of a developed community with more discussion.

Trump has made a number of posts on Truth Social calling all negative information about his company in the media “fake news.” He has also posted messages asking people to join the site.

This article originally appeared on The Bharat Express News and has been updated.

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