Technology

Truth Social’s big day

by Rebecca Klar and Julia Shapero 03/22/24 03:51 PM ET

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Technology

The Big Story

Truth Social merger approved after hurdles

Shareholders of Digital World Acquisition Corp. approved a merger Friday with Truth Social, a media startup owned by former President Trump, teeing up its stock market debut and a potential $3.5 billion windfall for Trump.

The merger to take Trump’s Truth Social platform public has faced several setbacks since talks began in October 2021.

A former DWAC board member and two others were charged with insider trading last June after they allegedly made $22 million by buying stock in the company ahead of the merger announcement.

The company was also fined $18 million by the Securities and Exchange Commission last July for allegedly misleading investors and the agency by failing to disclose that DWAC’s future CEO and board chair had been in talks with TMTG before going public.

In regulatory filings ahead of Friday’s shareholder vote, DWAC pointed to its previous dustups with the SEC as a potential risk.

It also cited Trump’s role in TMTG as a risk factor, noting the company’s “success depends in part on the popularity of its brand and the reputation and popularity” of the former president.

Read more in a full report at TheHill.com.

Welcome to The Hill’s Technology newsletter, we’re Rebecca Klar and Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.

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