It looks like Truth Social won’t be getting the significant cash injection from its planned merger with a so-called “special purpose acquisition company” formed to raise money to fund and merge with the Trump Media & Technology Group: Digital World Acquisition Corp. will return $533 million to investors as the proposed merger that was originally scheduled for September 2022 apparently peters out, Reuters reports.
The refund means the “private investment in public equity,” or PIPE, transaction is canceled after DWAC raised more than $1 billion to invest in TMTG as a way to boost Truth Social, Trump’s competition to Twitter that never attracted a broad audience and has become a conservative echo chamber where Trump posts rambling announcements.
What this means for Truth Social is unknown. The platform has been running at a significant loss for Trump, and with the 91-times indicted felon set to sit for three criminal cases and multiple civil cases, including a quarter billion financial fraud case in New York State, cash will be at a premium for the alleged criminal family. Of course, Trump World tried to claim the loss of a half billion dollars was a benefit: In a statement, Trump Media CEO Devin Nunes said ending the agreement is “in the best interest of TMTG’s equity holders and completing our merger with DWAC as soon as possible.”