Trump's Truth Social DWAC SPAC deal falls flat after extension fails to secure shareholder support

Reuters has reported that the deal between the TMTG and $Digital World Acquisition Corp(DWAC.US)$ has failed after shareholders did not vote in favor of a one-year extension of the deal. TMTG is the parent company of Trump’s Truth Social, a social platform Trump announced in October of 2021. The deal would have seen TMTG receive $293 million and a private investment in public equity of $1 billion.
Svea Herbst-Bayliss of Reuters notes that the DWAC management can extend the deal by six months without the need of shareholder support. Whether this extension happens, and whether or not it’s enough time to rally the shareholders to vote in favor of a one-year extension remains to be seen.
This isn’t the only problem plaguing Trump’s Truth Social and DWAC. As mentioned, the social media platform was barred from $Alphabet-A(GOOGL.US)$ Play over inadequate moderation. The deal between TMTG and DWAC is also facing a federal criminal probe, a probe that is altogether different from the outstanding civil probe of DWAC.
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