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Trump’s Truth Social clears path to go public with DWAC merger vote

Digital World Acquisition Corp. (DWAC) shareholders have officially approved the company’s merger with Trump Media & Technology Group. Axios Business Editor Dan Primack joins Yahoo Finance Live to discuss the future of Truth Social following the deal’s completion.

Primack notes that Trump is set to receive $3.5 billion in stock value. However, he clarifies that this is not actual cash, but paper stock: the former president cannot sell shares for a six-month period. Trump is unlikely to borrow against his shares given the company’s status as a meme stock, Primack explains. He adds that post-SPAC companies have done “very poorly” historically, which further dismisses any suspicions that Trump may opt to borrow against his shares.

Regarding Truth Social’s business strategy moving forward, Primack notes that it remains unclear, saying that the site is “purely an ad business.” However, he acknowledges that the app currently has “a very big fanbase” despite “not [being] much of a business.”

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor’s note: This article was written by Angel Smith