Trump’s new social media site intends to raise funds through a Shell-sponsored scheme

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Former President Donald Trump speaks at one of his neo-fascist rallies on September 25, 2021 in Perry, Georgia
Photo: Sean Rayford (Getty Images) – According to Trump, the new firm is “valued” at $1.7 billion. Former President Donald Trump, a white supremacist who hardly understands how to operate a computer, said late Wednesday that he wants to launch Truth Social, a new social media network, next year, with beta testing beginning in November for a small group of people. And while the site was almost instantly penetrated by pranksters only hours after the announcement—long before anyone was intended to be able to register an account—hardly that’s the most intriguing aspect of the tale.

No, the most intriguing aspect of Trump’s proposed social media network is how it would be utilized to generate revenue. Because wherever Donald Trump travels, he brings with him a slew of dubious business dealings. And it’ll be fascinating to see how MAGA investors are almost definitely duped by Trump’s latest business venture, which is attempting to go public via a special purpose acquisition company, or SPAC.

The Trump Media and Technology Group (TMTG), which is launching Truth Social, has a company address listed as Mar-a-Lago but isn’t registered with the state of Florida yet, as far as Gizmodo can determine. According to a very real number posted by spokeswoman Liz Harrington, TMTG is worth $1.7 billion—something that wasn’t plucked out of the former president’s ass.

According to the Wall Street Journal, TMTG will merge with a shell business named Digital World Acquisition Corp. for the express purpose of being listed on a stock market. Trump Media and Technology Group will be able to go public by piggybacking on another firm, and Trump’s “media and technology” company will be able to circumvent a slew of regulatory barriers designed to keep corporations fairly open in the hopes of protecting investors.

The Wall Street Journal puts it thus way:

A SPAC, also known as a blank-check company, is a shell company that registers on a stock market only for the purpose of merging with a private business to take it public. The private firm then takes over the SPAC’s stock market listing. For many companies, SPAC mergers have risen in popularity in the last year since they allow them to create business predictions. Those aren’t permitted in traditional IPOs.

Investors in any SPAC, according to the Wall Street Journal, have the ability to withdraw their funds before the sale is completed. And the publication suggests that this may be the case with Trump’s SPAC agreement.

From the Wall Street Journal once more:

The Digital World Acquisition SPAC now has $290 million in cash on hand. The money retained by the SPAC might be used by Mr. Trump’s company to support its expansion, but that cash pile could diminish. Because SPAC investors have the option to withdraw their funds before the purchase is completed, this is the case. Withdrawals have increased dramatically in recent months, with many SPACs’ shares dropping as some firms who went public this manner failing to reach their growth objectives.

However, even if things are clearly going south, we remain dubious that ardent Trump fans, of which there are far too many, will withdraw their funds. People who believe in Trump’s anti-democratic cause will certainly invest for reasons other than money, which is one of his brand’s strengths. Trump fans have given the former president millions of dollars in political contributions, and they’re likely to give him considerably more if he advertises a private cause.

The private cause in this case is a struggle against Google, Facebook, and Twitter, among other Big Tech firms. Will Trump’s army of pro-fascist supporters worry if he makes a little money in the process?

Trump, on the other hand, has to get moving if he wants to get the most out of his new firm. The SPAC bubble might collapse at any time, according to a recent article in Harvard Business Review. Furthermore, according to a research from last year, the great majority of SPACs’ stock prices dropped after they merged.

We’d often be skeptical of dodgy SPAC agreements with unknown firms, but this is an exception. Anyone who invests in Trump or his shell business is fully aware of the risks involved. If you believe in former President Trump, we recommend putting all of your money into Trump Media and Technology Group. Everything you deserve will be given to you.