‘Truth Social’ Enters Free-Fall As Multiple Top Executives Quit


Digital World Acquisition Corp., which is what is known as a special purpose acquisition company and was the previously announced other party in a merger that if ever finalized will take the Trump company behind Truth Social public, has seen three more executives hand in resignations in recent weeks, according to a new filing made with the federal Securities and Exchange Commission.

Truth Social is Donald Trump’s alternative social media platform formed (long) after his removals from mainstream social media sites following last year’s violence at the Capitol. Deadlines associated with finalizing the merger deal were originally set for this past September — but that didn’t happen. The two companies are under what is apparently ongoing federal scrutiny from both regulatory authorities and prosecutors amid concerns hinging in part on potentially illegal communications between Digital World and the Trump company about the deal before the former went public. The Digital World execs who’ve unveiled their departure plans include board member Rodrigo Veloso and chief financial officer Lee Jacobson, who both submitted resignation letters on December 9. Another board member, Luiz Philippe Braganza, revealed his exit on November 28.

The company claimed none of those leaving were in disagreement about policies or practices leading to their exits — although the description cited in Forbes doesn’t appear to include potential concerns about finances. Digital World finally secured approval from stockholders for extending the deadline for completing the merger through September of next year, meaning an additional 12 months would be tacked on, but it doesn’t appear there is any public confirmation the hurdles those involved are facing will be dealt with — although there was also previous reporting about the Digital World team potentially negotiating extensions for investment pledges tied to the deal. Some of those who promised investments already pulled their pledges after earlier deadlines passed. They lost around $139 million out of an overall $1 billion commitment, although that obviously left a lot still pledged.

Digital World was also able to eventually overcome what were initial difficulties in getting shareholders’ support for the extension of one year, hurdles that CEO Patrick Orlando tied in part to that many individuals (rather than firms) had invested, making reaching those whose participation was needed extra difficult. At least two Republicans in Congress, including Rep. Marjorie Taylor Greene (Ga.), have invested in Digital World following last year’s announcement of the merger plans.