NEW YORK: US regulators are investigating a deal between Donald trumpThe fledgling social media company and an investment vehicle to propel the former president’s venture into the stock market, documents showed Monday.
Once merged, the companies say they plan to launch the social media platform “Truth Social” nationally early next year, hoping to rival services such as Twitter, which launched in January. Trump was banned over the US Capitol riot.
digital world Acquisition Corp (DWAC), which is partnering with Trump, reported in a filing to US markets watchdog Securities and Exchange Commission that it “received preliminary, fact-finding inquiries from regulatory authorities with which it is cooperating.”
Digital World, already listed on Wall Street, announced in late October that it would merge with Trump Media & Technology Group (TMTG), allowing the former president’s venture to be listed without the usual procedures.
In a joint statement, the two companies announced on Saturday that a group of institutional investors had committed to contribute $1 billion to the transaction.
He did not specify the identities of these investors in the regulatory document on Monday.
Digital World says the SEC is seeking details of its board meetings, brokerage procedures, the identities of some investors and Trump’s dealings with the company.
The Financial Industry Regulation Authority, for its part, had requested the DWAC for information on its stock activity prior to the official announcement of the TMTG deal on October 20.
“The investigation does not mean that the SEC has concluded that anyone has violated the law or that the SEC has a negative opinion about DWAC or any person, event or security,” Digital World’s filing said.
Its stock was down three percent on Wall Street at around 1645 GMT.
Digital World is a Special Purpose Acquisition Company (SPAC), sometimes called a “blank check” company because it has been established with the sole purpose of merging with another entity.
Trump says the new platform will be an alternative to Silicon Valley internet companies that he says are biased against him and other conservative voices.
The 75-year-old was removed from Twitter – his favorite communication conduit while he was president – as well as Facebook and YouTube following the January 6 uprising, in which crowds of Trump supporters, incensed by his repeated false claims of November 2020. The election was stolen from him, the US Capitol attacked.
Currently available for pre-order on the App Store, this expected launch is scheduled for the first quarter of 2022.
Once merged, the companies say they plan to launch the social media platform “Truth Social” nationally early next year, hoping to rival services such as Twitter, which launched in January. Trump was banned over the US Capitol riot.
digital world Acquisition Corp (DWAC), which is partnering with Trump, reported in a filing to US markets watchdog Securities and Exchange Commission that it “received preliminary, fact-finding inquiries from regulatory authorities with which it is cooperating.”
Digital World, already listed on Wall Street, announced in late October that it would merge with Trump Media & Technology Group (TMTG), allowing the former president’s venture to be listed without the usual procedures.
In a joint statement, the two companies announced on Saturday that a group of institutional investors had committed to contribute $1 billion to the transaction.
He did not specify the identities of these investors in the regulatory document on Monday.
Digital World says the SEC is seeking details of its board meetings, brokerage procedures, the identities of some investors and Trump’s dealings with the company.
The Financial Industry Regulation Authority, for its part, had requested the DWAC for information on its stock activity prior to the official announcement of the TMTG deal on October 20.
“The investigation does not mean that the SEC has concluded that anyone has violated the law or that the SEC has a negative opinion about DWAC or any person, event or security,” Digital World’s filing said.
Its stock was down three percent on Wall Street at around 1645 GMT.
Digital World is a Special Purpose Acquisition Company (SPAC), sometimes called a “blank check” company because it has been established with the sole purpose of merging with another entity.
Trump says the new platform will be an alternative to Silicon Valley internet companies that he says are biased against him and other conservative voices.
The 75-year-old was removed from Twitter – his favorite communication conduit while he was president – as well as Facebook and YouTube following the January 6 uprising, in which crowds of Trump supporters, incensed by his repeated false claims of November 2020. The election was stolen from him, the US Capitol attacked.
Currently available for pre-order on the App Store, this expected launch is scheduled for the first quarter of 2022.
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