De-SPAC Merger Between Digital World Acquisition and Trump Media & Technology Group Approved, Valued at $1.1 Billion Despite High-Profile Legal Issues.

Trump Media and Technology Group Receives Nasdaq Listing Approval; Making a Billion-Dollar Wager on a Potential Second Trump Term

Digital World Acquisition (DWAC) shareholders approved the merger with Trump Media & Technology Group (TMTG) on Friday. The combined company will soon trade under the ticker DJT and has been valued at $1.1 billion, with a transaction price of $10 per share. Despite past de-SPACs mergers averaging a -59% return in the last year, DWAC’s stock has shown remarkable performance, rallying 111% year-to-date and closing at $36.94 on Friday. This makes it one of the few SPAC stocks to trade significantly higher post-merger.

The proposed merger between DWAC and TMTG has gained significant attention due to high-profile legal issues, intense trading activity, and Trump’s recent win in the Republican primary. Many view this stock as a bet on Trump winning the US presidency in November 2024. However, this merger is occurring in a challenging environment for de-SPACs, with past mergers over the last year averaging a -59% return. Nevertheless, Digital World Acquisition first IPO’d in September 2021 with a focus on technology and despite facing challenges typical of de-SPAC companies, the potential merger with TMTG has generated significant interest among investors. To access the full article and continue following this story, sign up for a free trial of IPO Pro.

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