Trump’s Truth Social Could Be Facing Trouble As It Fails To Secure Backing

It may have seemed that Truth Social was steadily gaining popularity, with users propelling it to the top of the Apple App Store when news of Elon Musk’s Twitter buyout first broke. 

However, it appears not everything is as smooth-sailing as it was before, with reports emerging that the social media company could find itself in financial turmoil after investors backed out of an anticipated US$1.3 billion investment. 

According to The Guardian, shareholders of Digital World Acquisition Corp—the firm set to merge with the Trump Media and Technology Group—have rejected a one-year extension to complete the transaction, possibly calling the entire deal off. 

The plan was derailed when the Security and Exchange Commission (SEC) began looking into the company this June, with rumors circulating that the negotiations of the merger were done illegally. 

CNBC reported that Digital World requires 65% of its shareholders to agree for the extension to go through, though it doesn’t look promising, with far fewer than needed voting in favor of the proposal. 

The final outcome of the vote will soon be announced at a special meeting this week, and could see the board consider alternative options, including a six-month extensions against the wishes of shareholders, or extending the deadline of the final vote. 

Should the company fail to come up with a viable solution, it’ll be forced to liquidate its shares and return the money it raised in its plans to go public.

With Digital World revealing that TMTG only has “sufficient funds” to run Truth Social till April 2023, it’s unclear how long the social media platform will be able to hang on. 

[via The Guardian and CNBC, cover image via Vladyslav Yushynov | Dreamstime.com]