Donald Trump’s Truth Social social media app has been saved from a premature death.
Dangerously close to running out of funds, investors in Digital World Acquisition Corp finally voted to acquire Truth Social.
With the vote, the merger now has until September 2023 to be finalized.
Not Out of the Woods Just Yet
There is still one hurdle to overcome, as the Securities and Exchange Commission has to approve the acquisition.
In the meantime, Truth Social will still have to raise funds to remain operational.
There are all kinds of reports about bills not being paid and vendors getting frustrated.
If the deal is approved, it will inject $1.25 billion into the company, but that does little to pacify vendors who are owed money right now.
If the SEC had approved the deal already, it would provide some comfort knowing that funds were coming, but this is obviously not the case just yet.
Believe it or not, Trump now staying off Twitter could play a significant role in the approval of by the SEC.
Trump, by contract, cannot post anything on Twitter until it has been up on Truth Social for at least eight hours.
Now, there are obviously ways around that, but we are just talking about his account.
Trump has stated that he has no plans to return to Twitter, which some industry experts believe was a push to investors to close the deal for Truth Social.
If he changes course, he could be charged with securities fraud.
Columbia Law School professor Eric Talley stated, “If it’s going to look, later on, that he never had that intention [of remaining off Twitter] but he just wanted to convince people that they should go ahead and close [the SPAC deal] that’s kind of a textbook securities fraud lawsuit.”
Somehow, I think Trump will manage to get through this, but I again go back to something I had said very early on about this venture… Devin Nunes is in way over his head.
Source: New York Post