Donald Trump’s plan to go public with his new media company backfired again when federal prosecutors announced a call to company board members that would lead to the IPO.
Digital World Acquisition Corp., a special purpose acquisition company (as well as a blank check company), said in a statement to the SEC that the subpoenas are part of a Department of Justice and SEC investigation into the company. The actions “could substantially hinder, materially hinder or prevent the implementation of the business association,” the statement warns.
The initial product of Trump’s ambitions in media and technology is the social media platform Truth Social, which has been operational for the past few months but to little effect. It does not alienate users from other social media platforms as originally intended. Trump was banned from Twitter on January 6, 2021, following his statements and his behavior following the attack on the United States Capitol.
Trump Media & Technology Group Corp. and Digital World agreed to merge in October last year, with the transaction expected to close in the second half of 2022.
Shares in the digital world, the public trading vehicle of the Trump agreement, fell 9% in morning trading.
The company said in an update today that federal investigations had been revealed earlier. But on Friday, the company announced it had received a grand jury notice with “substantially similar requirements” to previous subpoenas.
The company said the focus of the investigation is Digital World’s correct experience of Trump’s company, as well as communications about potential targets other than Trump’s company. Investigators are also examining the “relationship between Digital World (and / or certain Digital World officers and directors) and other entities (including ARC Global Investments II LLC, a sponsor of Digital World, and some consultants, including Digital World Underwriter. and Financial Advisor “. Initial public offering),” the release reads.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
