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Trump's Truth Social clears final regulatory hurdle for merger with cash-flush acquisition firm

Acquisition firm has seen its value soar as Trump won early primaries, merger now poised to occur

Published: February 15, 2024 12:01am

Updated: February 15, 2024 12:13am

Truth Social, Donald Trump's social media platform, announced late Wednesday it had clear its final regulatory hurdle for merging with a cash-flush acquisition company whose value has soared in recent weeks as the former president won the first three major presidential primary contests.

Digital World Acquisition Corp. (DWAC) announced that the Securities and Exchange Commission had "declared effective" the registration statement for its proposed merger with Trump Media and Technology Group, the parent company for Truth Social.

The SEC's action ends nearly a two-year-long saga of delays that some conservatives feared were driven by political influences at the Biden administration. It also gives tens of thousands of everyday investors who made a bet on the merger a chance to own a piece of the Trump-owned firm heading into the 2024 election

DWAC said it plans to announce by week's end the date of a special meeting where stockholders can vote to approve the merger.

Devin Nunes, the former California congressman who serves as Truth Social's CEO, hailed the development as a chance for the social platform to gain capital and grow as a free speech alternative to Big Tech companies that have stirred controversy by engaging in various forms of censorship.

"Truth Social was created to serve as a safe harbor for free expression and to give people their voices back," Nunes said. "Moving forward, we aim to accelerate our work to build a free speech highway outside the stifling stranglehold of Big Tech

"I'd like to thank everyone who has believed in our mission and helped bring us to this moment: DWAC and its CEO Eric Swider, DWAC shareholders, the TMTG Board of Directors, the entire TMTG staff, and the whole community of Truth Social users," he added.

DWAC has seen the value of its stock rise in recent weeks from around $15 a share to $43.50 late Wednesday, fueled in part by Trump's commanding early success in the GOP primaries.