Former President Donald Trump and his business partners scored a huge victory regarding the merger of his media company with Digital World Acquisition Corp. (DWAC) regarding the Truth Social platform.
According to the Washington Examiner, an essential merger between DWAC and Trump Media & Technology Group, Trump's social media company, was granted its second extension, effectively saving Trump's company a staggering $300 million.
Investors overwhelmingly, at 65%, voted in favor of the second extension, which provided executives to make the extension official.
The two companies will now have until September 2024 to complete the expected merger.
“Digital World Acquisition Corp. Announces Voting Results of Special Meeting to Approve the Extension Amendment”
—> https://t.co/THBlei2v3XDonald J. Trump Truth Social Post 09:48 AM EST 9/06/23 #DonaldTrump #NeverSurrender pic.twitter.com/ISrnXjYxA0
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) September 6, 2023
The Examiner explained the potential $300 million loss if the extension wasn't granted:
Over 65% of the venture's shareholders signed off on the extension. If it had not been granted by Friday, Digital World and its deal would have effectively died. In that case, Digital World would have been required to return $300 million to shareholders, the amount that would be injected into the combined firm, according to multiple reports.
In a rare update, Digital World CEO Eric Swider praised investors for voting in favor of the merger extension.
"Thank you for all of the outstanding support," Swider wrote.
More than 65% of shareholders in Digital World Acquisition Corp. — a special purpose acquisition company — signed off on giving Trump Media & Technology Group until next September to complete its merger and list the combined firm on Nasdaq.
— DottieSilentNoMore (@DottieFincham) September 6, 2023
He added, "Please understand my silence. We remain focused on the task at hand and are watching every word we say."
The two firms first announced the intent to merger in October 2021. The deal nearly went south over an SEC situation, but was ultimately resolved.
Both companies reportedly reaffirmed their commitment to complete the merger, noting several internal changes, one of which gives the former president 55% control over the company.
Trump launched Truth Social as his alternative to Twitter, which he was suspended from after the Jan. 6 Capitol protests. His account was eventually reinstated, but until last month, he hadn't posted a single tweet.
Investors undoubtedly remain hopeful that the merger will take place, as it will likely lead to mountains of profit for many of them.
