'Trump Could Keep Control Of Truth Social, Even If He Sells Most Of It' - Axios
Portfolio Pulse from Happy Mohamed
Former President Trump will retain control of his social media company, Truth Social, even if he sells most of his shares post-IPO. This is due to the creation of a new class of high-vote stock by Digital World Acquisition Corp. (DWAC), the SPAC merging with Truth Social's parent company. Trump will be the sole holder of this stock, granting him 55% voting power. DWAC recently settled with the SEC over misleading investors and agreed to pay an $18 million penalty. The company has yet to file its required quarterly reports for Q1 or Q2 2023.
August 16, 2023 | 2:50 pm
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NEUTRAL IMPACT
DWAC's merger with Truth Social allows Trump to retain control even if he sells most of his shares. The company recently settled with the SEC over misleading investors and has yet to file its Q1 and Q2 2023 reports.
The news directly pertains to DWAC as it is the SPAC merging with Truth Social. The creation of a new class of high-vote stock could potentially impact the company's governance structure. The recent settlement with the SEC and the delay in filing quarterly reports could raise concerns among investors, potentially impacting the stock price. However, the exact impact is uncertain as it depends on investor sentiment and market conditions.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100