February 16, 2024

Truth Social Clears SEC Hurdle for Potential Trump Windfall

Donald Trump’s Truth Social has been running on fumes almost from day one of its existence.

A massive funding haul has been held up by the SEC, but that just changed for Trump.

On Wednesday, Trump’s media company got the thumbs up for its merger with Digital World Acquisition Corp.

Show Me the Money

When Truth Social was initially created, the game plan had always included this merger, which, at the time, would have given Trump more than $1 billion in funding as part of the merger agreement.

The deal has been held up by the SEC for more than a year, but that hurdle was just cleared.

If the merger goes through, at current stock prices and with Trump’s ownership share, he would see his net worth explode by about $4 billion, but this fight is not over yet.

Ironically, two co-founders of Trump Media, Andy Litinsky and Wes Moss, could still block this merger from going through.

Their investment company, United Atlantic Ventures, is demanding two seats on the board of directors as well as a $1 million reimbursement payment.

Additionally, former Digital World CEO Patrick Orlando could hold up the deal, as it is rumored that he is looking for more compensation after being removed.

Orlando was ousted last May, with the company stating, “Due to the unprecedented headwinds faced by the Company, the Board agreed it was in the best interest of its shareholders to select a new management team to execute an orderly succession plan and set strategic operating procedures for the Company in this new phase."

Eric Swider, current CEO of Digital World, was excited about the deal, however, stating, "We are immensely proud of the strides we’ve taken towards advancing the Business Combination.

"This achievement marks a significant milestone for us. Our sincere thanks go to our shareholders for their unwavering support. We are excited to soon share the news of the Business Combination’s approval process with them."

Trump exclusively uses Truth Social for posts, although they are usually reposted on other outlets.

This has become an echo chamber of sorts for Trump, who has 6.6 million followers, about 13 times less than he has on X (87.4 million followers).

Former Congressman Devin Nunes (R-CA), who Trump lured away from Congress to run the project, said Digital World wants "to accelerate our work to build a free speech highway outside the stifling stranglehold of Big Tech.”

Right now, however, Donald Trump is Truth Social, as few other accounts get any grip on the site.

The question remains what happens to the platform without Donald Trump? Apparently, Digital World is happy with the answers that it has come up with.

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