Donald Trump’s venture into the social media landscape with Truth Social is under threat and could come to an early end if the merger with Digital World collapses. The failure of this merger could lead Trump to lose out on a deal that has been in the works for two years.
The Impending Deadline
The Washington Post reported that a critical deadline is fast approaching for the merger between Trump Media & Technology Group and Digital World. If the deadline is not met or extended, it could have dire consequences for the entire deal. Moreover, Digital World could have to return $300 million to investors.
Stakes and Promises
When the merger was first proposed, Trump Media & Technology Group – the entity behind Truth Social – pledged that it would result in the creation of a tech giant initially valued at $875 million and potentially worth up to $1.7 billion depending on stock performance. However, nearly two years later, the deal is facing a significant threat.
Chaos and Controversies
The past two years have been marked by turmoil, including executive departures, allegations of insider trading, and an $18 million settlement related to accusations that executives misled investors and the SEC. Jay Ritter, a finance professor at the University of Florida, commented on the situation. He said: “The deal does seem to be running out of time. You can’t just keep getting extensions forever.”
The Shareholder Vote
To secure an extension, Digital World would need approval from 65% of its nearly 400,000 investors. Any unvoted shares would be counted as “no” votes. In the event the extension fails, Digital World said that it would essentially shut down its operations and reimburse investors at a significantly lower price of around $10.24 per share, a far cry from what many initially paid.
Donald Trump’s Silence
Donald Trump, who retains a 90% ownership stake in Trump Media, has not publicly addressed the crucial shareholder vote on his own Truth Social account. His silence has raised questions about the fate of the merger, though it’s possible he’s preoccupied with his legal troubles.
Limited Following for Truth Social
Despite earlier projections of 41 million total users by the end of the year, Truth Social has struggled to gain a substantial following. Usage estimates from Similarweb, a web traffic analysis firm, suggest that it is far from reaching its ambitious user base target.
The Internet Responded
News of the merger’s potential collapse was shared across the internet and, for the most part, people were critical of Trump. “Another failed business! What a business genius! If he didn’t inherit his father’s fortune, he would be selling stolen watches from a suitcase on the market,” one person said.
Trump’s No Good at Business
Others echoed the aforementioned commenter while also speculating about the future. One person wrote: “Trump business fails. This isn’t news. This is like reporting that the sun came up today. What will be news is the next indictment as they follow the money trail and realize that no money was put into Truth Social to build the brand. Instead, it will be revealed, as usual, that Trump embezzled the money.”
Changing the Subject
Some people changed the subject and questioned why the former president still has a fanbase. “Why doesn’t something happen to make his cult turn on him and realize what a traitor he really is? Apparently getting charged with a bunch of crimes isn’t bad enough,” one person said. Cult members need to be deprogrammed, it’s time-consuming, costly, and [has] a mediocre success rate,” another replied.
Trump’s a Con Man
Others discussed Trump’s past. One person said: “His entire life is a long catalog of bankruptcies and screwing over every single business entity he could. He’s a joke and anyone stupid enough to think he’s not a straight-up con man gets what they deserve.”
Trump’s Increasingly Deranged Tantrums
Others claimed they weren’t surprised in the slightest. “It’s been slowly failing since it started. No debate. Everyone on it had the same views and quickly got bored. Now it’s just a sounding platform for Trump’s increasingly deranged tantrums,” one person said.
Morality and Sympathy
Plenty of people felt no sympathy for investors. You invest in something as stupid and morally repugnant as Truth Social, you get exactly what you deserve when all your money disappears. No pity,” one individual said. “No sympathy whatsoever,” another echoed.
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