- On Thursday, shares of Digital World Acquisition Corp., SPAC, which intends to list Trump Media, jumped.
- The move comes after Google added former President Donald Trump’s Truth Social platform to its Play Store.
- The app was previously banned from the store due to content moderation issues.
Stock Digital World Acquisition Corporation., a shell company that intends to take the Trump Media and Technology Group public, has surged after former President Donald Trump’s Truth Social was allowed on the Google Play Store on Wednesday.
DWAC shares rose more than 14% to $18.30 on Thursday. The Nasdaq paused DWAC trading for about five minutes Thursday morning during a spike. The stock peaked around $97 this year in March.
This change means the app is now available on the app store for 44% of US smartphone users who have an Android device. Android users could previously access the platform through their web browser or by “downloading” the app through the Truth Social website.
Read more: Supreme Court rejects Trump’s proposal to overrule Mar-a-Lago documents case
The app was previously banned from the Google Play Store for violating Google’s rules for moderating user-generated content.
“Apps may be distributed on Google Play provided they comply with our developer guidelines, including the requirement to effectively moderate user-generated content and remove inappropriate messages such as those that incite violence,” a Google spokesperson said on Wednesday.
According to Google, Truth Social has agreed to provide content moderation and remove and block users who post messages that incite violence.
The platform was founded by Trump after he was banned from Twitter in January 2021. “because of the risk of further incitement to violence” after hundreds of his supporters attacked the US Capitol.
DWAC shares fell in early October when Elon Musk said he would buy Twitter. Earlier, the billionaire said that he would restore Trump’s account. The former president had over 80 million followers on Twitter, but he only has about 4 million on Truth Social.
Read more: On January 6, the committee votes to subpoena Trump to testify under oath.
Investors cited these anemic numbers as one of the reasons why funding was cut from the DWAC-Trump Media merger. The company lost $138 million of its $1 billion private investment after a key deadline passed in September.
DWAC is currently pushing for an extension of the merger deadline, which is currently set for December 8th. The company needs 65% of shareholders to approve a one-year extension, but so far has not been able to get adequate support. Without an extension or completion of the merger, DWAC will liquidate on December 8th. Shareholder voting has been postponed until November 3rd.
The deal is also the subject of a Justice Department investigation for possible security breaches related to undisclosed discussions between the companies prior to the merger announcement. Whistleblower and Trump Media and Technology Group founder William Wilkerson informed the SEC of potential violations.
One way or another, this company will go bankrupt. Wilkerson recently said in an interview with the Miami Herald. “I don’t think the company will be approved by the SEC.”
Trump Media said the company is looking into legal action against the SEC to delay the deal.
Credit: www.cnbc.com /