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

Social media merger: Former President Donald Trump is edging on securing a table investment amount from his stake in social media app Truth Social, via a merger deal valued at about $5.7 billion. 

merger comes as Trump navigates 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), merger aims to bring Trump Media & Techlogy Group (TMTG) to stock market. 

Shareholders of DWAC have shown ir support for merger, paving way for its completion in near future, although deal faces several hurdles including lawsuits demanding a greater share allocation for former associates involved in deal's early sts.

Despite se challenges, merger is anticipated to provide TMTG, parent company of Truth Social, with a crucial $300 million cash infusion. This comes at a time when company has reported operational losses and has been sustaining itself through loans convertible into stock.

valuation of TMTG could soar to as much as $5.7 billion upon merger's completion, a figure that could increase furr when accounting for ditional warrants and shares. This valuation spike is largely fueled by enthusiastic support of Trump's followers and retail investors, despite recent dips in Digital World's stock price following merger's approval.

Trump, who is eyeing a return to presidency, would own a significant majority of combined company, highlighting deal's potential to reinforce his financial and strategic position. merger represents t 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 January 6, 2021, Capitol attack.

deal has t been without its setbacks, facing scrutiny and investigations from regulatory bodies and justments in leership and company structure. neless, Trump continues to utilise Truth Social as his primary platform for engment, contrasting with his previously vast following on more mainstream platforms.

(With Reuters Inputs)