Donald Trump’s new media and technology company may need to pursue other funding options as federal investigations into its merger partner threaten to delay or nullify the deal.
On Monday morning, Digital World Acquisition Corp., a Specialty Purchasing Company (SPAC) that has agreed to merge with Trump Media & Technology Group, announced that it had received a grand jury subpoena on June 16 and 24.
The calls “and investigations by the Department of Justice and the SEC are expected to impair the effectiveness of the registration application, which could substantially impede, impede or prevent the completion of the business combination,” the DWAC filing reads. .
In other words, when the merger is complete (the deal has until September 8, 2022, although it could be extended to March 8, 2023), the investigation will delay the merger and potentially kill it. . DWAC has more than $1.2 billion earmarked for Trump’s media and technology business. If the deal fails, Trump’s startup will need to find alternative sources of funding.
The DOJ and SEC investigations relate to the DWAC merger process, due diligence and financial relationships between DWAC board members and certain external entities, among other matters.
In a statement on Monday, Trump’s company said, “We encourage and cooperate with oversight that supports the SEC’s core mission of protecting retail investors.”
Trump Media & Technology Group currently has a product on the market: Truth Social, a Twitter-like app that sells an alternative to Twitter’s “free speech”. Trump himself uses the app exclusively as a contract mandate and remains in the main draw. The company did not disclose usage data.
The company is also in the process of creating a streaming service that includes “canceled” shows, podcasts, news and “shows that include a second edition.”
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
