Thursday's rally could mean massive returns for insiders involved in the deal, including a handful of hedge funds.
"Trump Media & Technology Group's growth plans initially will be funded by DWAC's cash in trust of $293 Million (assuming no redemptions)," according to the release. The planned merger values Trump Media & Technology Group "at an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 Billion depending on the performance of the stock price post-business combination," the press release Wednesday said. The Securities and Exchange Commission did not immediately respond to a request for comment about the level of trading in the SPAC. That could be a sign that retail investors active on social media platforms were fueling the rally in the SPAC. The ticker DWAC was among the top 10 most popular names on Reddit's WallStreetBets chatroom Thursday, even exceeding meme stock GameStop' s mentions, according to alternative data provider Quiver Quantitative.
In the press release Wednesday night, the ex-president's new company said its "mission is to create a rival to the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America."ĭigital World Acquisition was incorporated in late 2020, shortly after Trump lost a reelection bid against Biden.
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