Trump's SPAC Deal: Will TRUTH Social Help Him Win in 2024?
Trump has announced the launch of “TRUTH Social." The social media network will be part of his media group, which is going public in a SPAC merger
Oct. 21 2021, Published 7:33 a.m. ET
Ex-president Donald Trump continues to be in the news despite leaving the White House. From his rallies to cryptic answers on whether he’s running in 2024, Trump has kept his followers busy. Now, he's announced the launch of a “TRUTH Social,” a social media network that will be part of Trump Media & Technology Group (TMTG). TMTG is going public in a SPAC merger.
The merger with Digital World Acquisition Group (DWAC) would value TMTG at $1.7 billion. What are the details about the SPAC transaction and the TRUTH Social network? Will they help Trump win in 2024?
Trump versus Big Tech
Trump never had a cordial relationship with Big Tech companies, and his relationship with both social and legacy media companies has been complicated. On multiple occasions, he slammed them for suppressing conservative voices. Meanwhile, Trump was an avid and infamous Twitter user.
Trump’s relationship with social media reached a breaking point after his Twitter account was blocked following the Capitol Hill violence. Whereas Trump went silent on Twitter, he remained popular.
Trump's SPAC deal
An official filing to the SEC hasn't yet been made. However, according to details tweeted by spokesperson Liz Harrington, the deal gives TMTG an initial enterprise value of $875 million. and there's a “potential additional earnout of $825 million.” Post-merger, the deal could value TMTG at $1.7 billion.
As part of the deal, TMTG is set to get $293 million from the SPAC trust account. The final payout will depend on how many redemptions there are in the merger vote. It will be interesting to watch DWAC's de-SPAC process.
The TRUTH Social media network
As Trump (calling himself “your favorite American president”) seemed to have no chance at reclaiming his Twitter account, he stood up "to the tyranny of Big Tech” with the launch of TRUTH Social.
Will Trump be running for president in 2024?
Amid speculations of Trump running in 2024, Trump has stated that he would make the announcement at an appropriate time, though his frequent rallies and fiery speeches leave little doubt that he intends to run again. If he were to win, it would be the second time in U.S. history of an ex-president returning to the White House after losing an election.
With Trump's social media network help him win in 2024?
Trump formed a good connection with his followers through his Twitter activity. With the nationwide launch of TRUTH Social in Q1 2022, Trump could consolidate conservative voters, which would undoubtedly help his 2024 campaign if he intends to run.