One of the most publicized SPAC merger announcements of 2021 was a deal to take Trump Media & Technology Group public. The merger was aimed at bringing a new player into the social media sector via former President Donald Trump.
What Happened: On October 21, a SPAC merger between Trump Media & Technology Group and Digital World Acquisition Corp (NASDAQ:DWAC) was formally announced. The deal was rumored the previous day after market close.
Trump Media & Technology is seeking to offer censor-free social media platforms that will compete with Twitter Inc (NYSE:TWTR), Meta Platforms (NASDAQ:FB), YouTube and more.
Truth Social is the company’s first social media platform, which had been released under beta testing for weeks, and officially launched on Feb. 21. The Presidents' Day launch was rumored for some time, with the date listed on the iOS app page from Apple Inc (NASDAQ:AAPL).
In its first day of public availability, Truth Social topped the app charts for the iOS store, seeing strong downloads and also some tech issues.
The SPAC taking Trump Media & Technology Group public faces some hurdles, including an SEC investigation and concerns the deal will be blocked.
Digital World Acquisition was the best performing IPO/SPAC of 2021 and offered a huge return for anyone who got in at the offering price.
Investors who bought the SPAC when the deal was announced have also seen strong returns.
Related Link: 7 Key Takeaways From The Donald Trump SPAC Deal
Investing $1,000 In DWAC: The merger between Trump Media & Technology Group and Digital World was announced on October 21 after being reported the previous night.
Shares of DWAC opened for trading at $12.73 on Oct. 21, which is the entry point for this hypothetical investment.
A $1,000 investment in DWAC at market open on Oct. 21, 2021, could have purchased 78.55 shares. Based on a price of $87.33 at the time of writing, the $1,000 investment in DWAC would be worth $6,859.77.
The investment is up 586% in a five-month period.
The public launch of Truth Social could continue to make DWAC a stock well covered and loved by investors betting on the future growth. DWAC was one of the most searched tickers on Benzinga Pro in the month of January.
There remains pressure on the SPAC to get the merger to go through, which could create pressure on shares.
DWAC shares have traded between $9.84 and $175 over the last 52-weeks.
Photo: Courtesy of Gage Skidmore on Flickr
