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What’s the Deal With Donald Trump’s SPAC?

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The news that Donald Trump is launching a social-media platform through a SPAC — the trendy shortcut to going public, in which a shell corporation merges with a private company — came as a surprise to almost everyone. It certainly happened quickly. While hundreds of SPACs are searching for merger partners (a process that can take more than a year), the deal struck between Trump Media & Technology Group and publicly traded Digital World Acquisition seems to have taken only a few weeks. The deal became even more intriguing after shares in the SPAC more than tripled once the deal was announced. Retail investors — no doubt many of them fervent Trump supporters — have poured into the stock. It was all the chatter on sites like Reddit and Twitter, and Fidelity reported that Digital World Technology was the No. 1 traded stock by its customers during the day.

Trump, despite being besieged by legal troubles, wasted no time crowing about his new venture. “I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech,” Trump, the chairman of TMTG, wrote in a statement. (He plans to call the network TRUTH Social.) “We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced. This is unacceptable.”

Trump’s interest in having his own media company is no surprise, of course. When he first ran for president in 2016, there was considerable speculation that it was just a branding exercise that would eventually end with the launch of a media company. But details about his latest plan are sketchy. The TMTG website has a........

© Daily Intelligencer

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