President Trump’s new media company will use the money to build ‘TRUTH Social,’ a social media platform that it says it “will not discriminate on the basis of political ideology” and will “fight back against the tyranny of Big Tech.”
QUICK FACTS:
- President Donald Trump’s new media company said Saturday that it has lined up $1 billion in funding from a “diverse group” of institutional investors contingent on the consummation of its planned merger with the blank check company Digital World Acquisition Corp., Forbes reports.
- “Reports surfaced earlier this week that Trump’s company was seeking to raise $1 billion in a PIPE deal that would value the company at around $3 billion—more than three times the $875 million valuation ascribed to it in the merger with DWAC that was announced in October.”
- Trump Media and Technology Group (TMTG) will be launching a social media platform called TRUTH Social.
BACKGROUND:
- Shares of DWAC rose 550% the week after the merger to $94.20, but recently has been trading in the $40s.
- “The PIPE and the merger with DWAC, which raised $293 million when it listed, are expected to leave Trump’s company with proceeds of about $1.25 billion, according to Saturday’s statement,” Forbes notes.
- TMTG will use the funds to construct a social media platform called TRUTH Social, which aims to “not discriminate on the basis of political ideology” but to “fight back against the tyranny of Big Tech.”
