Trump social media company loses vote to go public and raise money to keep running: report
Digital World Acquisition Corp., a so-called "blank check" company, failed on Thursday to garner enough shareholder votes to take Donald Trump's Truth Social public.
"Former President Trump's social media company has another potentially big problem on its hands: It's struggling to complete a stock market listing that would allow it to raise more than $1 billion it needs to keep running," NPR reported. "Trump Media and Technology Group, which includes the Truth Social app it launched earlier this year, had been planning to list on the Nasdaq stock exchange through a complicated process known as a SPAC merger."
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The Securities and Exchange Commission has yet to approve the merger.
"Instead of pursuing a traditional IPO, the Trump Media and Technology Group decided to merge with a blank check company that is already listed on the Nasdaq," NPR reported. "These kinds of deals have became popular in recent years, when interest rates were near zero. In effect, they give private companies a shortcut to going public — requiring less transparency than traditional IPOs."
https://www.msn.com/en-us/money/companies/trump-social-media-company-loses-vote-to-go-public-and-raise-money-to-keep-running-report/ar-AA11CtpQ?ocid=msedgntp&cvid=2fc16ba749644c51f12625e1573a0e51
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