Shareholders of Acquisition of the digital world (DWAC), the special purpose acquisition taking former President Donald Trump’s technology and social media platform public, approved the long-awaited merger with Trump Media & Technology Group on Friday. DWAC shares fell after the vote.
X
DWAC shareholders voted Friday to merge the special purpose acquisition company with Trump Media. Meanwhile, Trump is struggling to secure bail of nearly half a billion dollars to appeal his $454 million civil business fraud judgment.
DWAC is now taking Trump Media and Technology Group (TMTG) public in a reverse merger. Trump Media is the parent company of the conservative social media platform Truth Social.
With shareholders approving the merger, TMTG will become a wholly owned subsidiary of Digital World. DWAC is expected to change its name to Trump Media & Technology Group, according to regulatory filings. Trump’s stake in TMTG is valued at more than $3 billion, based on DWAC’s current stock price.
DWAC stock rose early before falling 13.9% to 36.86 during market action Friday. On Wednesday, DWAC shares jumped 17.8%.
Truth Social was launched after Twitter, now X, shut down Trump’s account following the January 6, 2021 riot at the United States Capitol.
In October 2021, Truth Media and DWAC announced their proposed merger. Federal investigations delayed the proposed merger for years. However, on February 14, DWAC announced that the United States Securities and Exchange Commission (SEC) had proclaimed the merger registration statement effective, approving the proposed combination to proceed.
Trump and DWAC Stocks
The Donald Trump brand and the value of DWAC stock are closely linked. Trump’s current status as the leading Republican presidential candidate figures directly into the stock’s gains so far this year. The federal charges could potentially tarnish that brand, according to company filings, although that hasn’t been the case so far.
Prior to Wednesday’s trading, DWAC had fallen more than 11% in March. Before Friday, DWAC stock was up 4% in March and had surged above the 50-day moving average, according to MarketSurge Analysis.
However, after Friday’s action, DWAC shares are now down more than 10%.
DWAC stock is up about 130% in 2024, as TMTG is now set to go public and Trump appears to be the GOP presidential nominee.
DWAC stock is down about 80% from its October 22, 2021 high of 175, marked just after the Trump merger deal was announced.
DWAC stock has a 41 Composite score on a best possible 99. Stocks also have a perfect 99 Relative Strength Rating And one EPS rating of 2.
P.follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
YOU MIGHT ALSO LIKE:
Get full access to IBD stock listings and ratings
Learn to select good actions? Read the investors’ corner
Is Rivian a buy right now with the Cybertruck hype?
Apple Sours Market Gains But 11 Stocks Signal Flash Buy; FedEx falls behind schedule