Home » Economy » Trump raises $ 1 billion in investments for his social network

Trump raises $ 1 billion in investments for his social network

Photo: AFP

The company that should give rise to the future social network of former President Donald Trump and the company with which it will merge to enter the Stock Exchange affirmed this Saturday that a group of institutional investors committed to contributing 1,000 million dollars.

This sum would be added to the 293 million dollars already recovered by the “Spac” Digital World Acquisition Corp during its arrival on Wall Street in September, details a statement.

By withdrawing transaction costs, Trump Media & Technology Group should thus recoup $ 1.25 billion to finance the launch of the former White House tenant’s social network, the document added.

The two companies have not specified who are the investors who pledged to provide the funds.

Trump had announced at the end of October that the company in charge of running his future social network would merge with Digital World Acquisition Corp, an acquisition company with a specific vocation, or “Spac” in English.

This fashionable financial instrument is like an empty shell that raises funds on the stock market, committing itself to approach a promising company in the following months, thus allowing the latter to enter Wall Street without the traditional process.

«Truth Social»

Named “Social Truth”, the future platform was presented by the former president as an alternative to Facebook, Twitter and YouTube, of which he was exiled for having incited his supporters to attack the Capitol on January 6.

Currently available in pre-order on the App Store, theoretically it should be launched in the first quarter of 2022.

Driven by the interest of private investors, the share of the “Spac” soared after the announcement of its rapprochement with the Trump company, going from about $ 10 to a peak of $ 175 in two days.

After the initial enthusiasm, however, it fell again and closed on Friday at $ 45, which gave it a valuation of $ 1.67 billion.

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