“TRUTH Social” – Trump’s media social network platform is
under SEC scrutiny – details in this Business Insider story (and links below) with
this headline:
· The SPAC backing Trump's new social
media venture disclosed in a SEC filing that it's under investigation.
· Regulators have requested information from the
company, but there's no indication of
wrongdoing yet.
· The company, “TRUTH Social,” has seen investment
from two Republican members of congress.
NOTE: This is a developing story.
Check back for updates.
A deal between a SPAC and Trump's new media company is being
investigated by the SEC and other
regulators, according to a report filed to the SEC.
According to the document from Digital World Acquisition Corporation (DWAC),
the SPAC that intends to merge with Trump's new media venture, the SEC has
requested documents: “About meetings of SPAC's board of directors, policies and
procedures relating to trading, identification of certain investors, and copies
of communication between the Digital World Acquisition and Trump's new
organization.”
FINRA, a private regulator, separate from the U.S. SEC, is also looking into the partnership, according to the document. The investigation comes after Trump's digital media company, “TRUTH social,” and DWAC announced that they were raising nearly $1 billion from investors.
Key point from FINRA’s looking: In late October and early November, they asked for a review of trading in DWAC's stock before the October 20 merger deal was announced.
The announcement sent stocks surging from $9.96 to $94.20 in just two days (as Trump supporters and investors looking to make a fast buck — and, they did).
Those stocks since are
back to roughly $43.00.
FYI: An investigation into the media company's proposed deal
was first reported by NY TIMES David Enrich
on Twitter.
* The
original article here from Business Insider.
* Related coverage from the Washington Post here. Seems to be getting more serious and much
wider attention and coverage.
This from that WaPo piece: A Special Purpose Acquisition Company (SPAC) is a shell company that is set up to take a private company public by merging with it.
They are called “blank check companies” because public investors can purchase shares without knowing what the shell firm will eventually buy.
For investors, the hope is that the stock price will shoot up when an acquisition target is announced.
Trump was banned on Twitter and Facebook when he announced in October that he was forming the “TRUTH Social” platform to “stand up to the tyranny of Big Tech.”
He previously had launched a blog called “From the Desk of Donald Trump.”
DWC’s stock went up by as much as 800% when it ventured with Trump’s “TRUTH
Social” company.
* Related coverage
from NEWSWEEK here – an excellent
piece.
* Related coverage from NBC News here – and with more details.
* Added after this was posted from Market Watch here (DWC stocks fall 5% after SEC probe announcement).
My 2 Cents: Just speculating on shady past Trump investments and a very long string of financial failures (casinos, hotels, golf courses, airlines, and other products, etc.) leaves little doubt as to the sole purpose of eventual success of “TRUTH Social” other than to allow Trump to quickly rake in millions for a possible 2024 rerun.
More likely, or at least in part, his new scheme, plot, or plan or whatever we choose to call it, is to help him raise sorely needed money to pay his long list of loans due vis-à-vis the well-known shortage of cash he has right now.
All-in-all this is his skill, his talent: “Con for Dough.”
Seems that is no going to continue with this social platform. As I said, that is shear speculation at this point.
Stay tuned because I’m sure there will be a ton of news later on this; it is a hot topic after all.
Thanks for stopping by.
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