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IPO Price: $10.00
IPO Date: Sept. 3, 20211
Return as of Dec. 2, 2021: 371.1%4
Market Cap as of Dec. 2, 2021: $1.4 billion5
Revenue as of last reported fiscal quarter: $0.006
Digital World Acquisition is a SPAC, also known as a "blank check company," which was formed on Dec. 11, 2020 for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.7 On Oct. 20, 2021, the company entered into a merger agreement with its wholly-owned subsidiary DWAC Merger Sub Inc., former U.S. President Donald Trump's Trump Media & Technology Group Corp. (TMTG), ARC Global Investments II LLC, and TMTG's chief legal officer.8 Upon completion of the merger, shareholders of DWAC will become shareholders of TMTG, the newly formed public company.9 Trump, who is chairman of TMTG, plans to use the company to build a media and technology company focused on social media, digital streaming, and more.10
The planned merger is the focus of newly opened investigations by the Securities and Exchange Commission and the Financial Industry Regulatory Authority. The probes were disclosed on Dec. 6, 2021 in a regulatory filing by DWAC. The two regulators are looking for information regarding the trading of Digital World shares, and the SEC is also looking at documents and communications between Digital World and Trump Media, according to The New York Times.11 More specifically, a number of media outlets have reported that Trump and Digital World's Chief Executive Officer (CEO) Patrick Orlando met earlier this year before the SPAC had raised any money. If the discussions between Trump and Orlando, which were not disclosed in DWAC's prospectus, are found to be material, representing significant talks about a merger deal before money was raised by the SPAC, the discussions could be in violation of SEC rules.12
On Dec. 6, 2021, TMTG announced that U.S. House Representative Devin Nunes of California would be resigning from Congress at the end of the year in order to join TMTG as its CEO beginning in January 2022.
