Incorporated in February 2021, Trump Media & Technology Group intended to use a special-purpose acquisition company (SPAC) to facilitate its becoming a publicly traded company. On October 20, 2021, TMTG and Digital World Acquisition Corp. (DWAC), a publicly traded SPAC founded in September 2021 by Miami-based, former Deutsche Bank and Wall Street banker Patrick Orlando, announced that they had entered into a merger agreement that would combine the two entities, allowing TMTG to become a publicly traded company. DWAC was created with the help of ARC Capital, a Shanghai-based firm specializing in listing Chinese companies on American stock markets that had been a target of SEC investigations for misrepresenting shell corporations. In 2021, the DWAC Trump venture was linked with another company, China Yunhong Holdings based in Wuhan, Hubei, until its lead banker who was running the merger promised to sever ties with China in December 2021, stating Yunhong was to "dissolve and liquidate". In February 2022, Reuters reported that the connection between Shanghai-based ARC Capital and Digital World was more extensive than thought, with ARC having offered money to get the SPAC off the ground.
TLDR: Despite all his rhetoric, Trump is heavily in bed with China, and Truth Social is big part of that relationship. Becoming publicly traded was always the plan, and it's now coming to fruition.
Rich people don’t sell their holdings like that. They borrow against them and use the loans to pay for everything. If he has a billion or two in equity, then he can get a billion in loans without ever actually selling the shares.
You can build a vapor ware fraudulent mess, make someone else the CEO and CFO and just be a board member and basically wipe yourself of all liability. You just need enough rubes to keep your stock up through the first week or two of IPO while you close the loans
How does someone come up with the value? Reddit has 300 million users and worth 6 billion, truth has 3 million and worth 3 billion?? Doesn’t make sense
Oh I thought there was a scientific method which calculates the value using concrete, verifiable metrics… I didn’t realize it was created out of thin air. Seems perfect for money laundering.
The stock market is pure speculation and hype. There’s no science or method to it. It’s straight up gambling. Some people are better at it than others. But it’s still gambling. Not to mention, I’m sure there are some foreign interests involved helping to push it.
Well think of the qualities of the users. One platform filled with chaotic contrarians, the other with people who will do anything you tell them to including rising up against the government.
Not exactly looking great for DWAC on this news. Not sure what this represents for a lock in period or if Trump can leverage that position to make bond.
Might be. If I knew how to tell the difference between floors and ceilings, I’d be doing a hell of a lot better. But who knows on price level, and even moreso with a SPAC that doesn’t actually have to report out numbers like a real company.
I’m saving my bearish sentiment for the Reddit IPO.
I don’t know if he can leverage it, as iirc I read that per the terms of this merger the major shareholders can’t divest until 6 months after closing. But he’s only got until Monday to pay and he now has to give the court advance notice about any efforts he’s making to get the bond. So he’s running out of time.
Bruh if your best news results in a down five percent day…
Like fine but lemme buy some puts right? Because she of your best day when the home boy announce the SPAC…
like bruh some bullshit EV stock I got pulled a permit to build a building ant it went up 25%. I get five percent ain’t shit but five percent on the best news you gonna get…
Add comment