The High-Stakes Merger: DWAC’s Acquisition of TMTG Amid Legal Issues and Investor Interest

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

On Friday, shareholders of Digital World Acquisition (DWAC) approved the SPAC’s proposed merger with Trump Media & Technology Group (TMTG), a company responsible for Donald Trump’s Truth Social platform. The merger values TMTG at an enterprise value of about $1.1 billion at a transaction price of $10 per share.

This merger has gained significant attention due to high-profile legal issues, intense trading activity, and Trump’s recent win in the Republican primary. Many view this stock as a bet on Trump winning the US presidency in November 2024. Despite facing challenges typical of de-SPAC companies, DWAC’s stock has shown remarkable performance, rallying 111% year-to-date 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.

Digital World Acquisition first IPO’d in September 2021 with a focus on technology. Despite facing challenges typical of de-SPAC companies, the potential merger with TMTG has generated significant interest among investors, making it one of the most closely watched de-SPAC deals in recent history. To access the full article and continue following this story, sign up for a free trial of IPO Pro.

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