The blank-check company that planned to merge with former President Donald Trump’s struggling Truth Social venture failed to secure enough shareholder support for a one-year extension to complete the deal, according to Reuters.
Trump launched the Trump Media & Technology Group, which owns Truth Social, with plans for a $1.3 billion cash infusion from Digital World Acquisition Corp., a special purpose acquisition company (SPAC). But the deal has been on hold indefinitely as Digital World faces scrutiny by the Securities and Exchange Commission and the Justice Department over whether the company illegally negotiated the deal with Trump before going public.
Digital World asked its investors to approve a one-year extension to complete the merger as a result of the investigations, which the company said in a filing “could materially delay, materially impede, or prevent the consummation of the business combination.”
Trump’s company was set to cash in on $293 million from the deal along with $1 billion in private investment. Trump’s company in the meantime has taken on tens of millions in loans, according to the report. Trump downplayed the deal ahead of Monday’s vote on Truth Social, arguing that the company is “doing really well” despite widely-reported financial struggles. The former president accused the SEC of “trying to hurt” his merger partner and suggested that he may line up private investors instead. “I don’t need financing, ‘I’m really rich!'” he wrote. “Private company anyone???”
With that in mind, and other reports that the social media platform is a “disaster,” Trump tried to pump up his company on Saturday.
Two days ago it was reported that the Truth Social app will not be available in the Google store over moderation problems.
According to AFP, “A Google spokesperson said the company notified Truth Social on August 19 that its app violated Play policies and required ‘effective systems for moderating user-generated content’ in order to be offered on the platform. The app breaks rules barring content that incites physical threats and violence, according to the tech firm.”