Trump Announces Social Media Platform Funded by SPAC

Former U.S. President Donald Trump has announced that his own media network, its first project being a social media platform, is nearing launch, to be funded by a special purpose acquisition company (SPAC). The new Trump Media and Technology Group (TMTG) plans to merge with Digital World Acquisition Corp. (DWAC) in a deal that values TMTG at up to $1.7 billion.

Trump's Social Media Platform

The initial project of the Trump Media and Technology Group (TMTG) is a social media platform called "TRUTH Social." The press release from TMTG, sent via Twitter by Trump spokeswoman Liz Harrington, states that TRUTH Social is now available for pre-order through the Apple App store, with a beta launch for invited guests starting in November 2021, followed by a nationwide rollout in the first quarter of 2022.

In an accompanying brief statement, Trump says, "I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech." In January 2021, while Trump was still in office, Twitter, Inc. (TWTR) and Facebook, Inc. (FB) were among the social media platforms that suspended his accounts.

Valuing the Trump Media and Technology Group

According to the press release, "the definitive merger agreement" between DWAC and TMTG will result in the latter's becoming a listed public company with an initial enterprise value of $875 million. It adds that there is "a potential additional earnout of $825 million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 billion depending on the performance of the stock post-business combination."

The press release goes on to say that TMTG's growth plans initially will be funded by $293 million of cash in trust held by DWAC, assuming no redemptions.