President Donald Trump’s media company said
World Acquisition Corp.
agreed to a $1 billion investment following the combination of both
first announced the plan to merge with the so-called blank-check firm
in October that would help enable him to regain a social media
presence after he was kicked off Twitter Inc. and Facebook Inc.
platforms. The new enterprise will be in operation by the first
quarter of 2022 and plans to start a social media company called
transaction will provide about $1.25 billion of proceeds to fund the
operations of the combined entity, Trump Media & Technology Group
Corp. said in the joint release Saturday, with the price conversion
ratio adjusted based on the share performance of Digital World.
billion sends an important message to Big Tech,” Trump said in the
statement, adding to earlier accusations of censorship and political
discrimination. “As our balance sheet expands, TMTG will be in a
stronger position to fight back against the tyranny of Big Tech.”
columnist Matt Levine said this week that Trump’s company hasn’t
provided updates on its financials, operations and plans, and that
the deal with Digital World has yet to close or file any proxy
to the math for the transaction, Levine
is “gonna get his money” because “retail investors and Trump
political allies will pay $44 for the right to give Trump $10.”
some investors have already gained from the planned deal.
fund manager Bruce Kallins just had the best month of his
three-decade career after his event-driven fund, Yakira Partners,
gained roughly 12% in October, far better than peers.
fund got a big boost from its stake in Digital World following the
announcement with Trump’s company. Yakira was the best performer
among 67 event-driven funds tracked by industry research firm
BarclayHedge. The fund’s returns were twice as high as the next
best performer in the category, said BarclayHedge President Sol
who has teased that he might run again in 2024 without making any
formal announcement, has been banned by major social-media companies
for his role in encouraging supporters who broke into the U.S.
Capitol on Jan. 6 as both houses of Congress were meeting to certify
Joe Biden’s victory in the 2020 presidential election.