Trump Readies Launch of Social Media Platform via SPAC

Former U.S. President Donald Trump is launching his own social media platform in an attempt to resist censorship and fight back against Big Tech.

Trump calls the new app TRUTH Social and said in a press release he is building it to “stand up to the tyranny of Big Tech.” The former president was banned from popular social media platforms in the wake of the riots on Capitol Hill in early 2021, leaving him unable to connect with his nearly 90 million followers on Twitter.

 

🚨President Donald J. Trump Announces Trump Media & Technology Group🚨

“I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech…

I am excited to send out my first TRUTH on TRUTH Social very soon…” pic.twitter.com/TCZVYq1VJQ

— Liz Harrington (@realLizUSA) October 21, 2021

 

Truth Social is launching in true Trump style. The Trump Media & Technology Group will combine with Digital World Acquisition Corp. (DWAC), a blank check company, to go public in a deal that values the Trump media company at $875 million initially. The media entity’s growth plans will be funded by a war chest of $293 million in cash.

Shares of blank check company Digital World Acquisition Corp soared nearly 400% on the development to $52, giving the Miami-based SPAC a valuation of approximately $2 billion. Meanwhile, shares of Twitter were down about 1% while Facebook’s stock was basically flat.

SPAC deals have caught on like wildfire over the past year amid demand from startups and investors alike. Startups like these types of deals because they allow them to provide a future outlook on performance, while IPO disclosures are limited to the past.

Trump Takes Aim at Big Tech

During his presidency, Trump tweeted on a near daily basis before getting silenced. Since then, he has been seeking out an alternative and engaging in talks with various companies, reports indicate. Now Trump is taking direct aim at social media giants such as Facebook and Twitter “to create a rival to the liberal media consortium and fight back against the Big Tech companies of Silicon Valley,” according to the announcement.

Trump is often asked why nobody will stand up to Big Tech and has taken it upon himself to do so, stating,

“I’m excited to soon begin sharing my thoughts on TRUTH Social and to fight back against Big Tech.”

Trump Media & Technology Group will be behind the launch of TRUTH Social, which is currently available for pre-order in Apple’s App Store. The app will also be available in beta format on an invitation-only basis starting next month.  The new social media app is expected to make its debut to the public in Q1 2022.