Trump gets investors nod for $5.7 billion Truth Social merger deal

Social media merger: Former President Donald Trump is edging on securing a notable investment amount from his stake in social media app Truth Social, via a merger deal valued at about $5.7 billion. The merger comes as Trump navigates the financial ramifications of various legal proceedings, including a $454 million judgement in a civil fraud case in New York.Set to take place with Digital World Acquisition Corp (DWAC), a special purpose acquisition company (SPAC), the merger aims to bring Trump Media &amp; Technology Group (TMTG) to the stock market. Shareholders of DWAC have shown their support for the merger, paving the way for its completion in the near future, although the deal faces several hurdles including lawsuits demanding a greater share allocation for former associates involved in the deal's early stages.Despite these challenges, the merger is anticipated to provide TMTG, the parent company of Truth Social, with a crucial $300 million cash infusion. This comes at a time when the company has reported operational losses and has been sustaining itself through loans convertible into stock.The valuation of TMTG could soar to as much as $5.7 billion upon the merger's completion, a figure that could increase further when accounting for additional warrants and shares. This valuation spike is largely fueled by the enthusiastic support of Trump's followers and retail investors, despite recent dips in Digital World's stock price following the merger's approval.Trump, who is eyeing a return to the presidency, would own a significant majority of the combined company, highlighting the deal's potential to reinforce his financial and strategic position. The merger represents not only a financial windfall for Trump but also a consolidation of his efforts to establish a direct communication channel with his base following his ban from major social media platforms after the January 6, 2021, Capitol attack.The deal has not been without its setbacks, facing scrutiny and investigations from regulatory bodies and adjustments in leadership and company structure. Nonetheless, Trump continues to utilise Truth Social as his primary platform for engagement, contrasting with his previously vast following on more mainstream platforms.(With Reuters Inputs)

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Trump gets investors nod for $5.7 billion Truth Social merger deal

The deal faces several hurdles including lawsuits demanding a greater share allocation for former associates involved in the deal's early stages.

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