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Partner for Truth Social’s parent company pushes merger deadline to 2023 ~ Washington


Investors in a company allied with former President Donald Trump voted on Tuesday to extend the deadline for its merger with his media company, buying time while federal authorities investigate the proposed deal that would see Truth Social’s parent company would bring to the public.

The vote to extend the merger deadline to September 2023 prevented a potential liquidation of Digital World Acquisition, which has attempted to merge with Trump Media & Technology Group, parent company of the Truth Social platform that Trump helped launch after he subsequently banned from Twitter January 6, 2021, attack on the Capitol.

Digital is a special purpose acquisition company, or SPAC – a publicly traded shell company designed to take a private company public through a merger. SPACs are often referred to as “blank check” companies because investors buy stock before they know the company with which the SPAC will merge.

The merger with Digital World would make Trump Media a public company and provide it with hundreds of millions in investment funds. But the deal must be approved by regulators — the Securities and Exchange Commission and the Financial Industry Regulatory Authority have been investigating Digital World since last year for violating securities laws in its negotiations with Trump.

Digital World needed 65 percent of shareholders to approve the extension, and the company delayed voting in September as it sought to rally investor support for the move. Without the extension, Digital World might have missed its deadline to merge with another company. SPACs have a limited amount of time to complete a merger before they have to liquidate and return money to investors.

Trump Media officials on Tuesday accused regulators of willfully undermining the deal by being slow with their review.

“This vote was necessary because the SEC is trying to sabotage our merger and harm President Trump for purely political reasons,” Trump Media told the Washington Post in a statement. “By refusing to either approve or disapprove the deal, and instead throwing the matter into a bureaucratic black hole of inaction, the SEC is violating its own statutes and harming the very retail investors it is sworn to protect.”

The SEC did not immediately respond to a request for comment.

Digital World stock was up more than 5 percent on Tuesday.

Despite his Twitter account being restored by new Twitter boss Elon Musk over the weekend, Trump has said he will remain with Truth Social and may not return to Twitter – a dilemma for the former president, who doesn’t want his own Social media platform is doing down, the Post has reported.

Digital World CEO Patrick Orlando said in an interview with IPO Edge on Tuesday that it was Trump’s “personal choice” to use social media companies other than Truth Social. But “so far I’ve seen him very engaged and very active on Truth,” Orlando said. “I would expect it to stay that way.”