Trump SPAC social media company appears to miss its first product deadline

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  • Former President Donald Trump’s new social media company appears to have missed its November deadline to launch an invitation-only beta version of “Truth Social,” its alleged alternative to Twitter.
  • The stock price of Digital World Acquisition Corp. — the SPAC company that plans to merge with Trump’s social media firm — has fallen dramatically since it exploded when the deal was announced in late October.
  • The November release date was the first clear test of whether the company could deliver on its promises to investors who bought stock in DWAC.

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WASHINGTON — Former President Donald Trump’s new social media company has missed a scheduled November deadline to release an invitation-only beta version of “Truth Social,” its alleged alternative to Twitter.

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There has been no official announcement of the beta launch, nor have there been any visuals or images of the platform online.

At the same time, the stock price of Digital World Acquisition Corp. — the SPAC company that plans to merge with Trump’s social media firm — has fallen dramatically as its shares declined when the deal was announced in late October. The price had exploded.

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Shares of DWAC, which were trading as high as $175 per share just after the merger was disclosed, were trading at around $42 per share on Wednesday.

It’s not uncommon for tech companies to miss their deadlines for product releases.

But the November launch date that Trump Media & Technology Group set for “Truth Social” was the first clear test of whether the company could deliver on its promises to investors buying stock in DWAC.

Representatives for TMTG and DWAC did not immediately respond to questions from CNBC about Truth Social.

DWAC is a special purpose acquisition company, also known as Blank Check Company, that had an initial public offering in September that raised approximately $290 million.

On October 20, DWAC announced that it plans to merge with Trump’s newly created TMTG, In a deal that resulted in the firm being valued at up to $1.7 billion,

In its announcement, Trump Media & Technology Group said it would “soon launch a social network called ‘Truth Social’.”

“Truth Social is now available for preorder in the Apple App Store. Truth Social plans to begin a beta launch for invited guests in November 2021.” the announcement said, A nationwide rollout is expected in the first quarter of 2022. Those interested in joining Truth Social can now visit www.truthsocial.com To sign up for the invite list.”

But as of Wednesday, the Truth Social website was still only a landing site and a sign up form on the “waitlist.”

It doesn’t seem to have changed since it first launched in October, and its privacy policy is due out on September 20.

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It is also not clear who is actually building the network.

One investor presentation TRUTH MADE BY TMTG DOES NOT DISCLOSE ANY COMPANY WORKING ON THE SOCIAL PLATFORM, NOR IS LISTING TO ANY EXECUTIVE INCLUDED IN THE SOCIAL MEDIA SITE.

The company’s media relations officer Roma Darvi has not tweeted about TMTG and Truth Social since October. Darvi did not respond to CNBC’s inquiries.

DWAC’s stock was trading at around $10 before the deal was disclosed.

Between October 21 and 23, more than 500 million shares of DWAC were traded, and the company was one of the most discussed companies on retail traders’ discussion boards.

Shares owned by DWAC also became a symbol of political support for Trump. Many of the former president’s most vocal supporters in Congress bought shares in the company.

But the frenzy of speculation soon dissipated.

Within a week, the stock price began to decline, and its continued decline hasn’t stopped.

While Wednesday’s level was about $42 per share, more than four times the pre-deal trading price, those who bought DWAC shares at the height of the hype and remained on the stock would have lost the value of most of their investments.

If Truth Social does indeed launch as promised, the network will provide a platform for Trump, who was banned from Facebook and Twitter due to the deadly January 6 hurricane of the US Capitol.

Without the ability to communicate directly with his followers online, Trump has been forced to rely on press releases and appearances on friendly cable news channels.

Twitter isn’t the only media platform that Trump and his allies are trying to replicate on their own to promote the former president.

Trump’s son Donald Trump Jr. and a partner recently formed a publishing company, Winning Team Press, and published a coffee table book of photographs from Trump’s years in office.

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