Former President Donald Trump is seeking to delay his social media company Truth Social’s merger with Digital World Acquisition Corp. as the deal faces increasing scrutiny from regulators.
The special purpose acquisition company, Digital World, had been planning to complete its merger with Trump’s start-up, Truth Social, by September 8. However, Digital World announced this week that it is seeking an extension until December amid continuing investigations into the deal.
EC and FINRA Investigations Delay Trump Media Deal
The merger has been under review by the Securities and Exchange Commission (SEC) and is facing inquiries from both the SEC and the Financial Industry Regulatory Authority. Regulators are examining discussions between Digital World and Trump’s team before Digital World went public last September.
Trump launched Truth Social earlier this year after being banned from Twitter and Facebook for inciting the January 6 attack on the U.S. Capitol. He hopes Truth Social will provide a platform for him to communicate with supporters and prepare for a potential 2024 presidential run.
However, Truth Social has faced significant challenges. The app remains unavailable on Google’s and Apple’s app stores due to insufficient content moderation policies. Technical issues also plague the platform.
Regulatory Hurdles Stall Trump’s Social Media Funding and Growth
Securing the merger with Digital World is seen as key for Truth Social to access the $1.25 billion that would provide crucial financing (Source). However, the ongoing probes mean Digital World has been unable to hold a shareholder vote on the merger.
The request for an extension indicates Trump and Digital World are not confident the merger will be completed soon. It marks the latest roadblock for the former president’s social media ambitions as he seeks a return to public life after his 2020 election defeat.
Source: The Guardian