(John Ransom, Headline USA) Trump World is getting the last laugh—for now—after Reuters reported that Digital World Acquisition Corp (DWAC.O), the public company former President Donald Trump merged into his social media company, ranks as the highest performer of its kind.
“Digital World Acquisition Corp which inked an $875 million deal in October to merge with Trump Media & Technology Group Corp (TMTG),” said Reuters, “currently ranks as the best performing SPAC stock ever, according to SPAC Research.”
A SPAC is a special acquisition company that allows existing companies to merge into public companies formed for that purpose.
SPAC linked to Trump’s venture outperforms others in sector https://t.co/ez08Jb45oS pic.twitter.com/RazPIBF2kn
— Reuters (@Reuters) January 24, 2022
The merged company debuted at $10 per share and now stands near $67, despite not currently selling any products or hosting any platform.
In December, Devin Nunes, R-Calif., resigned from Congress to take over as Chief Executive Officer for Trump Media & Technology Group.
“The time has come to reopen the Internet and allow for the free flow of ideas and expression without censorship,” said Nunes in a statement.
“The United States of America made the dream of the Internet a reality and it will be an American company that restores the dream,” he said.
Trump had a notoriously dicey relationship with Big Tech, masters of the Internet, which banned Trump from various platforms including YouTube, Facebook and Twitter.
But so far, it’s worked out for Trump with DWAC enjoying an imputed value “of close to $13 billion, including debt,” said Reuters.
Like many other tech stocks, DWAC has retreated a bit as the market has started to adjust to a world of higher interest rates in the last month. Recently the stock had traded as high as near $88.
There are other risks associated with the stock, however.
Like most things Trump does, the merger has attracted the attention of federal regulators who have started an investigation into the deal after Sen. Elizabeth Warren, D-Mass., urged the SEC to look into it.
The SEC then asked the company to turn over certain records including “communications between Digital World and TMTG, meetings of Digital World’s board, policies and procedures relating to trading, the identification of banking, telephone, and email addresses and the identities of certain investors,” according to Reuters.
“The SEC stated in its request that its investigation does not mean the regulator has concluded that anyone violated the law, Digital World added,” said Reuters.
