From Presidency to SPAC’ing — seems like a complete 180? Not for Donald Trump who just this week announced plans to take his social media company, Trump Media and Technology Group (TMTG for short), public through a SPAC.
Trump launched TMTG in early February and is reported to be developing a social media network and digital content as its main offerings. Trump’s mantra seems to be ‘if you get banned from social media, just make your own’ — but it seems hard to distinguish how concrete the idea actually is. The merger is set to be carried out with the Digital World Acquisition (DWAC) SPAC that itself only just IPO’ed in September.
The deal values TMTG at $1.7b and shares for DWAC have already surged incredibly since the news came out. The gains are estimated to generate $440m for the SPAC’s owners. DWAC’s share price has been up by a significant 410% over the past five days alone.
why it matters
The merger hasn’t even happened yet, and the blank-cheque company set to house TMTG is already seeing investors pile onto it. This shows that it’s still quite early days — whether or not Trump’s platform is successful doesn’t matter much for the early pre-listing buzz.