According to two people familiar with the matter, former President Donald Trump’s new social media venture is looking to raise $1 billion by selling shares to hedge funds and family offices. It will happen at multiples of the valuation it commanded in an October deal with a blank-check acquisition firm.
The social media app by Trump Media and Technology Group will release soon. It claims the development that stands to receive $293 million. If its deal to list in New York via a merger with blank-check firm Digital World Acquisition Corp is completed. That’s more than three times the $875 million valuations the company claimed in October. When it announced a planned merger with Digital World Acquisition Corp, a publicly traded special purpose acquisition company.
DWAC shares soared 550 percent from around $10 in the week following the deal’s announcement to around $40 recently
DWAC shares soared 550 percent. That too from around $10 in the week following the deal’s announcement to around $40 recently. On which the company is basing its increased valuation. The sources inform Trump Media is now looking to raise to $1 billion. At a valuation of close to $3 billion to reflect Digital World’s share rally. This happened after Trump supporters and day traders snapped up the stock. It is a clear indication that Trump and the Digital World dealmakers are attempting to capitalize on the market euphoria surrounding their venture. It has so far been fueled by its lofty goals rather than a working business.
Investors cheered the news that the PIPE could dilute existing Digital World shareholders. less than expected by pricing at a much higher level than the customary $10 per share seen in most mergers with blank-check firms on Wednesday. According to Reuters, who cited sources familiar with the plans, Trump has been personally calling potential investors and asking for commitments of more than $100 million.
Investors were shown a demonstration version of the TRUTH Social app. It resembles a Twitter feed. During his presidency, Trump’s preferred social media platform was Twitter. He regularly used to tweets per day before the ban. The launch of the company and its planned social network comes after Trump’s ban from virtually every major social media platform. Following his supporters’ January 6 storming of the U.S. Capitol. Trump intends to use TRUTH Social to reclaim his social media presence and serve as the company’s chairman.