KazPost

Kazakhstan News
Thursday, Mar 28, 2024

Wall Street regulators investigating Trump $1bn social media deal

Wall Street regulators investigating Trump $1bn social media deal

The former president described a request for documents by regulators looking into the blank-cheque merger as "a continuation of witch hunts".

Wall Street regulators are investigating the $1.25bn deal to bring Donald Trump's social media venture to the stock market, it has been disclosed.

Digital World Acquisition Corp, a so-called "blank cheque" company that has agreed to merge with Trump Media & Technology Group (TMTG) revealed details of the probe in a filing on Monday.

It said the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) were looking into the deal.

The app will launch in the new year


Digital World said the SEC asked for documents in early November relating to communications between Digital World and TMTG, meetings of Digital World's board, policies and procedures relating to trading, the identification of banking, telephone, and email addresses and the identities of certain investors.

The SEC stated in its request that its investigation does not mean the regulator has concluded that anyone violated the law, Digital World added.

Mr Trump dismissed the request for documents as a political attack.

He told the conservative channel Newsmax: "You know, this is just a continuation of witch hunts. Anything you do they want to look at it."

The regulatory probe is focused on the October announcement by the former US president's media venture that it would merge with Digital World.

That prompted excitement among Trump supporters and retail investors - pumping up the value of the shares and pushing the venture's valuation to peak at close to $4bn.

Mr Trump was banned from major social media platforms


Digital World had launched on the US stock market three weeks earlier with the sole purpose of finding a privately-held company to buy.

TMTG said on Saturday that it had entered into agreements to raise about $1bn from a group of unidentified investors, bringing the deal's total proceeds to $1.25bn.

But TMTG will receive this money only if the deal is completed.

A vote required for Digital World shareholders to approve the transaction has yet to be scheduled.

US senator Elizabeth Warren had asked the SEC to investigate the proposed merger over potential violations of securities laws, including whether they had sufficiently disclosed when deal talks began.

The SEC declined to comment on Monday.

Digital World said FINRA had asked for details in late October and early November about "surrounding events," including a review of trading, that preceded the announcement of the merger.

FINRA said in its request that its inquiry should not be construed as an indication that any violations of Nasdaq rules or federal securities laws have occurred, Digital World added.

FINRA declined to comment.

Meanwhile on Monday, TMTG announced that Trump ally Devin Nunes would step down as a US congressman to join as its chief executive in January.

Mr Trump chairs the company.

Digital World, which has still not launched in trial mode, said it expected average revenue per user of the former president's social media app, Truth Social, to grow to $13.50 in 2026, with 81 million total users.

TMTG plans to launch an early version of the app in the first quarter of 2022.

Mr Trump was banned from top social media platforms after the 6 January attack by his supporters on the US Capitol, which was based on unsubstantiated claims of fraud in last year's presidential election.

Digital World said it wants to build a "non-cancellable" global community including a TMTG+ video service that will stream "non-woke" entertainment and news.

Newsletter

Related Articles

KazPost
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
An Ominous Shift in Warfare: Western Powers Risk War Crimes and Violate International Norms with Cluster Bomb Supply to Ukraine
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
Corruption in the European Parliament - Business as usual
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
Paris Suburb Grapples with Violence as Curfew Imposed: Saint-Denis Residents Express Dismay and Anger
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
×