Digital World Acquisition Corp. — the special purpose acquisition company (SPAC) that Truth Social must go public — a Securities and Exchange Commission filings Investors on Friday pulled back $139 million from the $1 billion commitments previously announced by the company.
More likely to come. Investors who agreed to deposit the money almost a year ago can now abandon their commitments. Digital World missed its first September. 20 deadlines To merge with Truth Social.
DWAC extend the term of the agreement by three months after shareholders refused to approve the 12-month extension offer. But investors can still withdraw.
Just the last issue for Digital World and Truth Social.
A major seller complained last month Real Social bills were not paid. A major web hosting operator said Real Social He owed about $1.6 million in contractually obligatory payments, financing the operation “major turmoil” Fox Business News reported.
In another setback, Truth Social’s trademark application rejected last month, because its name was very similar to other operations.
Truth Social isn’t as strong as some investors might have hoped. The social media platform is largely a forum for Trump, who constantly posts self-praising posts and daily articles from the right-wing media praising him.
Responding comments mostly include QAnon conspiracies, exaggerated pro-Trump and anti-Joe Biden Like memes and cringey comments: “A tribute to the greatest President ever.”
Comments are absent from social media platforms like Twitter, which makes them more dialog. Most negative comments about Truth Social are buried or lost from the site, which the organizers promised will be uncensored.
Trump launched Truth Social after being kicked off Twitter later in January. January 6, 2021, riot in the US Capital. Trump uses the platform as he does on Twitter – cursing at enemies, complaining about being victimized, and falsely insisting that he wins the 2020 presidential election.
Last month, Digital World issued a warning. SEC filing that one Trump’s decline in popularity could hurt business. The dossier said the success of Truth Social was due to the “reputation and popularity” of Trump, who grappled with the investigation, chairing the Trump Media and Technology Group, which owns and operates the social media platform.
“To be successful, TMTG will need these millions of people to register and regularly use TMTG’s platform,” the filing warned. “If President Trump becomes less popular or there are other controversies that have damaged its credibility or people’s desire to use a platform linked to it,” the planned merger with Digital World “could be adversely affected,” he warned.