According to Forbes, Donald Trump's Truth Social operation appears to be at risk again.
Forbes reported that three executives left the company charged with taking the former president's Truth Social platform public. They were not sure why they left.
The chief financial officer was one of the top-level departures revealed in the Digital World Acquisition Corp.'s filings.
The departure of a board member in early November was followed by a number of resignations. The shareholders agreed to extend the deadline for completing the acquisition of Truth Social. The deadline was pushed back almost two years after the SPAC first announced it would acquire Truth Social.
The former president promised a "major announcement" this week that turned out to be the sale of Donald Trump's digital trading card collection. Digital World investors may have been hoping for something to boost his status as a presidential candidate in the future.
Problems and investigations have plagued Trump's operation.
In August, a major web-hosting operator claimed that Truth Social owed them more than one million dollars.
The U.S. Patent and Trademark Office found that Trump's company name was confusingly similar to others.
The Securities and Exchange Commission is looking into the possible negotiation of the merger deal before DWAC went public.
Digital World warned in a SEC filing that a decline in Trump's popularity could hurt the business. According to the filing, the success of Truth Social depends on the reputation and popularity of Trump, who chairs the Trump Media and Technology Group.
Digital World shares fell 4% in pre-market trading. Since a high of more than $100, the stock has lost 80% of its value.
All Rights Reserved © 2024
