Shares linked to Trump’s social media firm fall amid talk of Musk-Twitter deal

The Truth social network logo is seen on a smartphone in front of a screen of former US President Donald Trump in this illustration taken February 21, 2022.

Dado Ruvic | Reuters

Shares of Digital World Acquisition Corp., the blank check company set to take Donald Trump’s media venture public, fell in volatile trading on Monday amid reports that Twitter is set to close a privatization deal with Elon Musk.

The stock had fallen more than 5% in premarket trading, but pared its losses when the market opened. The title is down more than 20% since the start of the year. The special-purpose acquisition company is set to merge with the former president’s Trump Media & Technology Group.

The media company includes a social media platform called Truth Social, which launched on Apple’s App Store in February. Trump’s company is being marketed as an alternative to social media giants Twitter and Facebook, both of which banned it on the grounds of inciting the Jan. 6, 2021, riot at the US Capitol.

The stock sale could be tied to news that Twitter may be close to a deal with Musk, who has pledged to change the platform’s censorship policies.

Earlier this month, the Tesla CEO offered to buy Twitter for $54.20 a share, or about $43 billion. The social media company, whose board met with Musk on Sunday, became more receptive to the offer after revealing it had secured $46.5 billion in funding.

Despite a weak 2022, shares of DWAC, which often trade in a volatile range, have quadrupled in value since it launched in September at $10 apiece.

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