This is a company formed by the former US President, Donald Trump, in February 2021. Devin Nunes announced that he would be the company’s CEO after he resigned from Congress.
TMTG’s only product is a social media platform called Truth Social. That too is not launched yet. It was claimed that it is set to release its Beta version in November 2021. After announcing the launch of Truth Social, SPAC and DWAC announced a merger with TMTG.
SPACs raise funds from investors by first selling the shares to the public. They then acquire unknown private companies. Many of the SPACs investors were firstly unaware that their money would be used to finance Trump’s company. TMTG was valued at $875 million on 21 October 2021.
TRUMP MEDIA & TECHNOLOGY GROUP Valued at more than $10 Billion
Before the announcement of the merger with TMTG, DWAC’s share was valued at $10. Later, after the announcement, Trump fans traded DWAC’s share $175, which is tremendously high.
When settled at $50, it values TMTG at a whopping sum of more than $10 Billion.
The graph showed TMTG’s changed value since October when it was announced. This value is extremely high despite having no launch, no business, and no users. This makes TMTG value more than anything Trump has acquired throughout his lifetime.
To date, Trump has not “completed its merger with DWAC or made associated securities filings.” But if it happens, Tump and Dwac investors are likely to gain huge profits.
But, DWAC earlier in its SEC filing represented having “not selected any specific business combination target, and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target.”
Media houses reported the discussions of DWAC CEO with Trump even before the former started trading. If this is true that the deal was agreed to in advance, then DWAC’s SEC filing will be considered as a breach.
About Truth Social
TMTG recently proposed a social media platform called Truth Social.
The former United States President, Donald Trump, was banned from Twitter and Facebook in 2021. This happened probably due to the United States Capitol Attack in 2021. Following this, he also launched a site called “From the Desk of Donald J. Trump.”
On this site, he posted an announcement in a Short tweet format. However, this site was shut down in less than a month.
The former President then decided to launch a new social media platform- Truth Social.
Technology and Finance
The posts made by the users are called ‘Truths.’ The reposts are called ‘retruths.’ Similarly, the news feed is called ‘Truth feed.’ The idea is very similar to the social media site Twitter.
Mastodon, a free and open-source social network hosting software, is customized for Truth Social. After the announcement of Truth Social, DWAC also saw a rise of 400%.
The highly volatile stock of the company was compared to GameStop Short Squeeze.
Truth Social Raises $1 Billion from Investors.
TMTG said that along with SPACs and PIPE, Truth Social had raised $1 billion in December 2021. The investors for the company are unidentified. The funding is expected to reach up to $3 billion, as reported by The Financial Times. According to the Digital World Stock Prices, the company is valued at $4 billion as of 3rd December 2021.
Donald Trump, in a statement, said that his company will be “in a stronger position to fight back against the tyranny of Big Tech.”
He also added, “America is ready for TRUTH Social, a platform that will not discriminate based on political ideology.”
Launch of TMTG’s Truth Social
This website is regarded as Trump’s attempt to gain his megaphone back. It was claimed to have a beta trial in November, but it missed its deadline. This highly awaited social media site is set to launch in early 2022.
Jason Miller praised the platform Truth Social and said it might affect Twitter and Facebook by lowering their market share.