Digital World Acquisition, the special purpose acquisition company aiming to take former President Donald Trump's tech and social-media platform public, has surged 165% in 2024 as federal regulators signed off last month on the proposed merger with Trump Media & Technology Group.
Meanwhile, DWAC stock sank 13.6% to 40.19 Wednesday during market action. As expected, the former president moved closer to becoming the Republican presidential nominee for 2024, winning 14 of 15 states that voted in primary contests on Super Tuesday.
DWAC plans to take Trump Media and Technology Group (TMTG) public in a reverse merger. Trump Media is the parent of the conservative social-media platform Truth Social. When the merger is complete, it is likely to trade on the Nasdaq under a ticker such as TMTG.
Truth Social launched after Twitter, now X, shut down Trump's account following the Jan. 6, 2021, riot at the U.S. Capitol.
In October 2021, TMTG and DWAC announced their plan to merge. That merger has been delayed for years amid federal investigations. However, on Feb. 14, DWAC announced that the U.S. Securities and Exchange Commission (SEC) has proclaimed the merger's registration statement was effective, approving the proposed combination to go forward.
Trump And DWAC Stock
DWAC shareholders are scheduled to vote on whether to approve the merger on March 22. If approved, Trump's 90% stake in TMTG could be valued at around $4 billion, based on DWAC's current stock price.
The value of DWAC stock is tightly bound up in the value of the Donald Trump brand. Trump's current status as the top Republican candidate for president figures squarely into the stock's gains so far this year. Federal charges could potentially tarnish that brand, according to company filings, although so far that has not been the case.
DWAC stock is down around 77% from its Oct. 22, 2021, high of 175, marked just after news of the Trump merger deal broke. However, the stock has surged 165% in 2024 as TMTG appears poised to go public and with Trump looking like he will the GOP's presidential nominee.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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