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Trump lashes out at social media company after success of SPAC deal by Reuters


Reuters. File photo: Former United States President Donald Trump addresses a rally on October 9, 2021, at the Des Moines, Iowa States Fairgrounds in the United States. REUTERS / Rachel Mummey

Written by Anirban Sen and Crystal Hu

(Reuters) – Former U.S. President Donald Trump will be able to retain ownership of his newly launched social media venture even if he wants to run another White House or be convicted by prosecutors investigating his business dealings.

Trump said last week that true social would be created through a new entity formed through the merger of the Trump Media and Technology Group (TMTG) and the blank-check firm Digital World Acquisition Corporation.

According to a regulatory filing issued late Tuesday, Trump was referred to as the “head of the company,” although the exact size of his shares in the company was not disclosed.

However, the former president is ready to keep his ownership in TMTG, even if the company faces a “material catastrophic event” – the latest filing includes a clause designed to protect its partnership.

“In order to maximize business continuity and to minimize, mitigate or eliminate any negative impact on the company from an elemental disruption event, the ownership of the company’s principal and position in the company will be structured in such a way as to eliminate the need for restructuring. There were incidents, ”according to the filing.

Since Trump was ousted from office in the last presidential election in 2020, he has repeatedly hinted that he could run for a third term in 2024.

Trump and his business interests are also the subject of numerous investigations by U.S. authorities – in June, the company named after Trump and its chief financial officer were indicted, the first allegations from more than two years of investigation by Trump’s New York prosecutors and his business dealings, Reuters reported.

In the latest filing, DWAC highlighted the risks of being associated with Trump’s company.

“The buyer hereby acknowledges the controversial nature of the association with the principal of the company and the family of the principal of the company,” it said.

As part of the earnings clause in the deal, TMTG shareholders will receive an additional 40 million shares based on DWAC’s share price performance, which closed down about 30% on Tuesday but is still trading well above SPAC’s IPO price of $ 10. Share

In early October, Reuters reported that the merger with TMTG had resulted in a potential loss of $ 420 million for DWAC main supporter Patrick Orlando, who has been trying to reinvent himself as a serial dealmaker for a decade.

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