Shares of the shell company Digital World Acquisition Corp. rose 80% on Thursday after announcing that it would merge with a firm owned by the former president of the United States. Donald Trump to create a new social media app called TRUTH Social.
The social network, formed in agreement with Trump Media and Technology Group, said Wednesday that it plans a beta launch next month and a full rollout in the first quarter of 2022. Shares of Miami-based Digital World were up 80. %, at US $ 17.83, on Thursday morning.
In a press release, Trump said he will launch TRUTH Social because Twitter Inc has banned him from its platform.
Twitter and Facebook Inc suspended his account after hundreds of his supporters stormed the United States Capitol on January 6, following an inflammatory speech in which the Republican declared without giving evidence that the 2020 elections were stolen from him through a electoral fraud.
Twitter indicated that Trump’s posts violated its “glorification of violence” policy. Facebook noted that Trump praised the violence in connection with the assault, in which his supporters attempted to block formal congressional certification of his electoral loss to Joe Biden.
Digital World Acquisition, led by former investment banker Patrick Orlando, has launched at least four SPACs – special purpose acquisition companies – and plans to start two more, but none have completed a deal yet.
SPACs use the money raised through an initial public offering to take a private company public.
Trump Media & Technology Group said it will receive $ 293 million in cash that Digital World Acquisition held in trust if no shareholder of the acquisition firm chooses to collect their shares.
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