Unfortunately for Trump, Truth Social is in trouble with Federal Securities Commission (SEC) regulators. They have been investigating him for a while, but now they decided to open it up further.
Truth Social cannot function without the investment, and there is no guarantee that will actually come to fruition, according to The Axios:
The SEC:
‘[I]s investigating communications between the blank check company, called Digital World Acquisition Corp., and Trump. Of particular interest would be if the two sides negotiated prior to DWAC going public, which would have been illegal.’
DWAC had already admitted that it was under investigation. It indicated that the SEC regulators wanted “additional documents and information.” It is interested in “communications regarding DWAC’s due diligence of companies other than Trump’s entities.”
The SEC told DWAC and other organizations, such as its IPO underwriter E.F. Hutton, it wants statements with an eye toward the future and “certain elements of the transaction history for equity.”
Thus far we know that Truth Social went up appearing much like Twitter’s less intelligent brother. Then, Trump began using it in May. So far, he has 3.25 million followers there.
He hired former Representative Devin Nunes (R-CA) away from his seat in the House of Representatives and its leadership to head up Truth Social. It apparently did not matter that Nunes had zero experience in the field.
DWAC shares plummeted after the special purpose acquisition organization (SPAC) said it had been served with another subpoena, according to The Marketwatch:
‘Shares of Digital World Acquisition Corp. DWAC, -9.45% tumbled 8.2% in premarket trading Monday, after the special purpose acquisition company (SPAC) that is buying the company behind Donald Trump’s Truth Social said it received another subpoena from the Securities and Exchange Commission related to the acquisition.
‘The SPAC said the subpoena seeks additional information on “communications regarding and due diligence of potential targets other than TMTG” [Trump Media & Technology Group Corp.] and relationships between Digital World and certain advisors, shareholders, as well as certain forward-looking information about TMTG. The company said [the] order of the examination of the registration statement “could materially delay, materially impede or prevent the consummation of the business combination.”‘
Elon Musk agreed to buy Twitter and reinstate his buddy, the ex-president. But apparently being the richest man in the world does not mean you want to lose money as the Twitter deal would. So Musk is waffling on the deal.
Featured image is a screenshot via YouTube.
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