Donald Trump is likely to run for president a third time. He said something about a rally last week. Digital World Acquisition Corp.'s shares increased in value for the first time in a long time. DWACs value went up 25% at market open on Monday.
At an Iowa rally on Nov 3, Trump said he would likely run for president again. While campaigning for Dr. Oz in Pennsylvania, he mentioned a big announcement. A third presidential run could be declared as soon as Nov 14, according to a report.
DWAC and Truth Social weren't doing well before the presidential allusions started. DWAC launched as a publicly traded company last year with the intent of acquiring and funding Truth and the broader Trump-affiliated media company. The media group and social platform would not be exposed to a lot of the transparency and reporting disclosures needed to get a company on the stock market.
The SEC, Department of Justice, and a federal grand jury in the Southern District of New York are investigating the merger. When the deal was announced and when Digital Worlds went public are both relevant to the investigations. Federal regulations prohibit companies from discussing acquisitions prior to an IPO.
Truth Social couldn't access the funds locked up in DWAC because of the ongoing investigations. The merger deal deadline was extended by one year. The extension needs to be approved by at least 65 percent of the company's shareholders. The deadline for the final vote has been extended six times because the affirmative votes are not there. The shareholder vote will take place on Nov 22. DWAC will go out of business on Dec 8 if the merger extension isn't successful.
It is not likely that Monday's share jump alone will keep DWAC and Truth afloat. Trump claims that his social media platform is doing better than its competitors, but Truth only has 1.7 million unique visitors a month in the U.S.
It is possible that Trump will be allowed back on his former platform as a result of Musk's takeover. There are clauses in Trump's contract that allow him to post elsewhere if he so chooses.
According to the Washington Post, Trump's family and legal representatives had to get involved in order to prevent him from signing a licensing agreement with Truth Social. Even with the chance to move to a better life, Trump might feel stuck.
According to reports, he told his friends that he can't abandon Truth because he knows he's the only thing that keeps it going. The Post reported that people familiar with Trump's thinking said he doesn't want a brand and platform so closely tied with him to fail. The stock spike shows that Trump is correct. The value of Truth Social is dependent on how Trump is viewed in politics. If he runs for president again, Truth Social could be around for another 2 years.
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