• Wed. May 29th, 2024

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

Byeditor

Mar 25, 2024

Shareholders of Digital World Acquisition (DWAC) voted on Friday to approve the SPAC’s proposed merger with Trump Media & Technology Group (TMTG), the company responsible for Donald Trump’s Truth Social platform. The merger values TMTG at an enterprise value of about $1.1 billion at a transaction price of $10 per share. The combined company will soon trade under the ticker DJT, possibly as early as this week. This merger 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.

This merger is occurring in a challenging environment for de-SPACs, with past mergers over the last year averaging a -59% return. However, Digital World Acquisition’s stock has shown remarkable performance, rallying 111% year-to-date and closing at $36.94 on Friday, well above the offer price pre-merger. This makes it one of the few SPAC stocks to trade substantially higher post-merger.

Digital World Acquisition first IPO’d in September 2021 with a focus on technology. 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.

By editor

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