In the wake of news about Kanye West — now legally known as just Ye — planning to purchase the right-wing social media site Parler, shares at Digital World Acquisition Corp. (DWAC), which is tied to Trump’s social media operation at Truth Social, are struggling again.
On Monday, DWAC shares closed over $1 below where they stood earlier in the day, though Tuesday saw a slight rebound, with prices near $16.50 — vastly below price levels the company previously saw before more recent issues emerged. DWAC is trying to merge with the former president’s Trump Media & Technology Group, but amid hang-ups like federal investigations of potentially illegal negotiations about the prospective merger before DWAC went public, it’s not working out. Initial deadlines associated with finalizing the deal already passed, and DWAC already lost nearly $139 million in pledged investments as the timeline ground forward. DWAC is trying to get approval from shareholders for formally extending the deadline for completing the merger, which was also evidently waiting on further approval from the U.S. Securities and Exchange Commission (SEC) — one of the agencies that’s also investigating the circumstances of the deal.
Patrick Orlando, the CEO at DWAC, has said it has proven difficult to get company shareholders to vote, even though plans falling through could mean the end of the firm, because many investors are individuals needing contact through brokerage services.
Overall, DWAC shares “fell 8% to $16.11 Monday as a new brash billionaire threw his hat into the conservative social media ring,” Forbes reported, tying the fate of the company’s stock to West’s interest in purchasing Parler. West and Trump are meeting this week, and the billionaire rap artist now known for his antagonistic public behavior said he would invite the former president to Parler. DWAC stock also fluctuated amid billionaire Elon Musk’s on-again, off-again push to buy Twitter, a purchase he’s now pushing through after the company challenged him in court to make him complete the deal. Legal proceedings in that challenge were temporarily halted after Musk renewed his interest in finalizing the arrangement. Musk has said he would let Donald Trump back on the platform. Although Donald uses his account on Truth Social much like his long-lost Twitter presence, from which he was booted after the Capitol riot, Trump’s total follower count on Twitter was tens of millions ahead of his total on Truth Social. Even if he doesn’t exactly struggle to get something out message-wise, his individual rants get less traction.