Donald Trump is in his latest attempt to regain his popularity. Special purpose purchasing company or SPAC. Trump announced Wednesday night that he has a new company called Trump Media & Technology Group (TMTG) and will merge that new company into a SPAC called Digital World Acquisition Company (DWAC).
If completed, the deal would transform Trump’s new media company into a publicly-traded company on the Nasdaq. And it would give TMTG enough money to buy a new Twitter clone called “Truth“.
WHAT IS SPAC?
In short, SPACs are shell companies that are listed on stock exchanges such as the Nasdaq and exist solely for the purpose of merging with companies that wish to go public.
Usually, someone in the financial world starts the company and tosses a few people in exchange for their shares, which usually sell for $10. They set a deadline by which they aim to find a company to merge with and tell the market what industry they are targeting.
DOES TRUMP HAVE A NEW COMPANY?
We think it was registered in Delaware in February, but somehow it wasn’t noticed until Wednesday night. According to the truly ridiculous 22-page investor presentation posted on his website, Trump has huge ambitions for TMTG.
TMTG’s ambitions don’t end with Trump’s Twitter clone, Truth Social, according to The Verge. As a result, TMTG aims to be a conglomerate with plans to run – in all seriousness – a news network competing with CNN, a streaming platform competing with Disney+, and a technology services business competing with Amazon Web Services.
Some journalists have already created accounts with usernames like “donaldtrump” and “mikepence” in the app.
Messages include headlines from news sources such as The New York Times, TechCrunch, and Variety. TechCrunch’s editor-in-chief Matthew Panzarino said he did not approve of the title.
Meanwhile, the Truth Social Terms of Service include a rule that prohibits users from vilifying Truth on the platform, even though TMTG promotes Truth as a “big tent” where everyone is “welcome.” Also, you cannot write text with too many capital letters.
TMTG’s presentation doesn’t say anything about income, past or future.
WHY DID TRUMP DO THIS?
Because he misses being on Twitter. If he is to run for president again in 2024, he will need a social platform.