Former President Donald Trump made a surprise return to X (formerly known as Twitter) by posting his own mug shot after surrendering at Fulton County jail in Georgia. This move adversely affected the stock of Digital World Acquisition (DWAC), a special purpose acquisition company that aims to take Trump’s tech and social media platform public, as it experienced a 3% decline in early trading. However, the stock eventually recovered and increased by 3.3% to $14.30.
In his post, Trump included a fundraising link for his 2024 presidential bid. The former president is facing allegations related to the attempted overturning of Georgia’s 2020 presidential election results. DWAC plans to take Trump’s media company, Trump Media and Technology Group (TMTG), public through a reverse merger. TMTG is the parent company of the conservative social media platform Truth Social. It is speculated that Trump’s return to X could potentially redirect a significant portion of Truth Social’s audience to the more mainstream platform.
DWAC stock is closely tied to the value of the Donald Trump brand, as his status as the top Republican candidate for president greatly impacts the stock’s value. While federal charges could potentially tarnish the brand, no significant impact has been observed thus far. The stock has experienced a significant decline, down around 92% from its high of $175 on October 22, 2021, and down 81% since Elon Musk’s purchase of Twitter in January 2022. DWAC recently reached a settlement with the U.S. Securities and Exchange Commission (SEC), agreeing to pay $18 million in civil penalty fees if the merger with TMTG is completed. The SPAC is seeking to extend its deadline for completing the merger, and a special meeting has been scheduled for September 5 to vote on the extension.
In summary, Donald Trump’s unexpected return to X and his involvement with DWAC stock has caused fluctuations in its value. The future of the Trump Media and Technology Group’s merger with DWAC remains uncertain, and any potential legal implications faced by Trump could impact the value of the stock.