Digital World Acquisition Corp warned Monday that potential damage to former President Donald Trump's popularity could hurt his firm.
The deadline for completing a merger with Trump's firm, which owns the Truth Social app, is September 6. If the merger isn't completed, DWAC could go out of business.
The deadline is next month. It could be extended by a year to September 8, 2023.
If President Trump becomes less popular or there are further controversies that damage his credibility or the desire of people to use a platform associated with him, and from which he will derive financial benefit, the results of operations, as well as the outcome of the proposed business combination, could be.
The removal of records from the White House is one of the many investigations that Trump is being investigated for. On the day of the insurrection, he was banned from the social networking site.
Damage to the former president's reputation could affect the value of the deal.
Demand for Truth Social may be limited according to surveys cited in the filing. According to The Hill, only 30% of people would use a social media site associated with the president. According to a survey by The New York Post, only 40% of Republicans would use such a platform.
Trump Media and Technology Group didn't reply to a request for comment on DWAC's filing. The CEO of DWAC called and left a message.
The SEC and DOJ are investigating DWAC's deal with Trump Media.
The filing said that failure to obtain any required regulatory approvals in connection with the Business Combination or to resolve certain ongoing investigations may necessitate us to liquidate.
Last week, DWAC delayed its earnings report.
When the Trump deal was announced, shares of DWAC were at their highest point in over a year.
All Rights Reserved © 2024
