A firm that agreed to merge with the parent company of former President Trump’s social media platform Truth Social failed to receive enough support from its shareholders to extend the amount of time it has to close the deal, according to Reuters.
Reuters reported on Tuesday that people familiar with the matter said Digital World Acquisition Corp. (DWAC) did not receive the necessary support from 65 percent of its shareholders to extend the proposed deal by 12 months.
DWAC said in a court filing last month that the success of the deal will depend on the “reputation and popularity” of Trump, who serves as the chairman of Trump Media and Technology Group (TMTG), which owns Truth Social.
The filing set a special shareholder meeting on Tuesday to discuss extending the Thursday deadline to complete the merger by one year. DWAC will dissolve if the extension is not approved.
Reuters reported that the transaction has been in jeopardy amid civil and criminal investigations into the circumstances of the deal. DWAC has hoped that the Securities and Exchange Commission would sign off on the agreement.
Regulators are seeking information on the relationships between DWAC and other entities, its board meetings, policies and procedures related to trading and certain investors’ identities.
The deal had received support from far fewer shareholders than the number needed to meet the threshold for approval, according to Reuters. DWAC executives do not expect they will receive enough shareholder support and are exploring alternatives.
One of the options is to delay the voting deadline to try to increase support from shareholders.
TMTG said in a statement to The Hill that Truth Social is continuing to grow “rapidly” through “extraordinary user engagement” and the recent launch of ads on the platform.
“TMTG will continue cooperating with all stakeholders in connection with its planned merger, and hopes the SEC staff will expeditiously conclude its review free from political interference,” the statement reads.
DWAC did not immediately return a request from The Hill for comment.