Trump SPAC becomes GameStop-like meme stock by promising “non-cancellable” community
Photo credit: tmtgcorp.com
In a topical event attempting to bring together all the bad in the world, YOLO investors push a Trump-affiliated SPAC to the moon, turning it into a GameStop-like meme stock in hopes of supporting (or to capitalize on) the former president’s goal of creating the world’s first “non-cancellable” global community – a social media site for conservatives.
A day after announcing its intention to merge with Trump Media & Technology Group to create conservative site TRUTH Social, shares of ad hoc acquisition vehicle Digital World Acquisition Corp. 340 percent at well above $ 35, triggering a halt in volatility after he became one of the most popular names on the Reddit board, lovers of AMC, WallStreetBets and “the stock” the most traded with more than a dime value, ”according to Bloomberg. The stock was trading below $ 10 yesterday ahead of Trump’s announcement.
PSPCs are an increasingly popular means by which private companies (like WeWork) can go public quickly and with less rigor than what is involved in the traditional IPO process. The mechanism is for a shell company to raise funds through an initial public offering with the promise that it will find a promising business to acquire. (This is why they are often referred to as “blank check companies.”) The company then uses that money to buy a private business, after which it essentially transfers the business and name to the acquired company.
So while the name traded today on the Nasdaq is Digital World Acquisition Corp., it will switch to Trump Media & Technology Group if the deal goes through.
Trump has been pissed off by his lack of an online microphone since Twitter and Facebook banned him following the January 6 riots and Trump’s false claims that someone robbed him of the 2020 presidential election, reported Reuters. This makes the horribly named Social TRUTH seem like something inevitable, in retrospect.
The announcement valued Trump’s current notional company at $ 875 million, and the plan is to launch a beta launch in November and have everything up and running by early 2022 – two facts that combine to immediately place TRUTH Social among the many big media startups that promised something they couldn’t keep.
Considering the desirability of building the world’s first ‘non-cancellable’ global community to be a ‘massive market opportunity’, Trump Media & Technology Group hopes to fight with both the ‘liberal media consortium’ and ‘Big Tech’, according to a pitch deck. While the company plans to start off by simply taking on Facebook and Twitter, it eventually plans to take on Netflix, Disney, CNN and iHeart media by creating a video-on-demand and podcast service called TMTG + with ” “unawakened” entertainment. “
It also plans to take on Amazon, Google Cloud, and Stripe, although it’s not clear exactly how. The former president will assume the functions of president.
“We live in a world where the Taliban have a strong presence on Twitter, but your favorite US president has been silenced. This is unacceptable, ”Trump said in a generally underrated prepared statement. “Everyone asks me why nobody stands up to Big Tech? Well, we will be soon!
The company’s presentation also includes a tally of Trump’s “historical social media followings”. This may seem like a completely irrelevant fact for a larger social media platform to include, except that the point of sale – especially for now – is not the company’s business plan. , but Trump himself. Think of Trump casinos, but Robinhood.
“You don’t buy this stock because you trust its optimistic cash flow forecasts; he didn’t care about the cash flow forecast, ”Bloomberg’s Matt Levine wrote Thursday. “You buy this stock because you love Donald Trump and believe the tech monopoly censorship threatens free speech. Cash flow, valuation, etc. are all unimportant. These are just vibrations.
“Don’t you get the impression that over the last 80 years or so, there has been a dominant view of investing, a front page of the handbook given, that investments are worth the current value of? their expected future cash flows? Levine added. “Don’t you feel that this world has ended and a new one has started? I should go buy some Dogecoin.
You can already pre-order TRUTH Social from the Apple App Store. Welcome to Hell.