Is Donald Trump’s Truth Social in trouble?: The social network, founded by the former president after he was kicked off of Twitter and other social media networks, may be in trouble due to issues with the “blank check” company with which it was scheduled to merge.
Donald Trump Keeps Getting More Bad News
Donald Trump, after he was kicked off of other social media networks near the end of his presidency, started his own media company, Trump Media & Technology Group, which is best known for the social network Truth Social.
The twist was that, as part of the SPAC (special purpose acquisition company) fad that was in full swing in 2021, Trump’s company was set to merge with a “blank check” company called Digital World Acquisition, in a transaction first announced in October of 2021. But now, as reported by the Washington Post, Digital World Acquisition is “now days away from potential liquidation.”
“With the $300 million Digital World had already raised from investors, Trump Media & Technology Group, creator of the pro-Trump social network Truth Social, pledged then that the merger would create a tech titan worth $875 million at the start and, depending on the stock’s performance, up to $1.7 billion later,” the Post wrote of the original plan for the deal.
However, the deal has taken an uncommonly long time to close and is facing a deadline of September 8, although shareholders could vote to extend the deadline. But, per the newspaper, in the absence of such a vote, Digital World would be forced to liquidate, leaving Trump Media in the lurch.
Why has Digital World gotten into trouble? Several reasons. The company has been accused of talking to Trump Media earlier than it was legally allowed to.
That followed several controversies, as reported by the Post:
“Its chief executive was terminated by the board, a former board member was arrested on charges of insider trading, and the company agreed to pay an $18 million settlement to resolve charges that it had misled investors and given false information to the Securities and Exchange Commission.”
Per Axios, “Truth Social has never disclosed its financials, including loans or how much Trump himself invested, so it’s unclear how long the company could remain financially viable were the DWAC merger to fail.”
Trump Media, meanwhile, sued the Washington Post for defamation earlier this year, in retaliation for their coverage of the merger. The company seeks $3.8 billion in the suit. It has also sometimes accused the SEC of seeking to block the deal.
Money Laundering?
The Guardian, back in the spring, had reported that prosecutors with the Southern District of New York had been looking into whether Trump Media “violated money laundering statutes in connection with the acceptance of $8m with suspected Russian ties.” It’s not clear what the status is of that investigation in New York.
For most of its history, Trump has used Truth Social much the way he used Twitter before and during his presidency- by taking shots at his various enemies, bragging about positive polls, and occasionally posting bizarre statements and sentiments. It’s been rare, however, for Truth Social to make news for posts by anyone other than Trump, and the former president has a much smaller audience on Truth Social than he did on Twitter.
Trump did return to Twitter, which is now known as X, for one post on August 24, when he posted his mugshot from his arrest in Georgia. The post is listed as having 259.1 million views, 372,000 “reposts,” and 1.7 million likes.
That marked Trump’s first post on Twitter/X since January 8, 2021, shortly after which he was “permanently” banned from the platform. When Elon Musk bought the company in late 2022, he reinstated Trump’s account, which meant that his years of posts were once again viewable. But Trump, concentrating on Truth Social instead, did not return to Twitter/X until last month, despite rumors earlier this year that he would be making a full-fledged return to his old stomping grounds.
At the same time, however, Special Counsel Jack Smith gained access earlier this year to the backend of Trump’s Twitter account.
Author Expertise and Experience:
Stephen Silver is a Senior Editor for 19FortyFive. He is an award-winning journalist, essayist and film critic, who is also a contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Stephen has authored thousands of articles over the years that focus on politics, technology, and the economy for over a decade. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
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