Trump Social Media Merger Booms in DWAC Stock as SPAC Performs Despite Difficult Market

Trump Media and Technology Group Receives Nasdaq Listing Approval; Making a Billion-Dollar Wager on a Potential Second Trump Term

On Friday, Digital World Acquisition (DWAC) announced the approval of its proposed merger with Trump Media & Technology Group (TMTG), a company that runs former President Donald Trump’s Truth Social platform. The merger values TMTG at an enterprise value of approximately $1.1 billion, with the transaction price set at $10 per share. The combined company will soon be trading under the ticker DJT, possibly as early as this week.

The attention given to this merger is due to several factors, including high-profile legal issues, intense trading activity, and Trump’s recent victory in the Republican primary. Many see this stock as a bet on Trump winning the US presidency in November 2024. However, de-SPACs are currently facing challenges in a difficult market environment, with past mergers over the last year averaging a -59% return. Despite this, DWAC’s stock has shown remarkable performance so far this year, rallying 111% and closing at $36.94 on Friday – well above the offer price pre-merger. This makes it one of the few SPAC stocks to trade substantially higher post-merger.

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