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Trump Social Media Company’s Owner Sees Stock Price Soar Over 1,600%

President Donald Trump and first lady Melania Trump step off Air Force One at Andrews Air Force Base, Md., Thursday, Dec. 31, 2020. Trump is returning to Washington after visiting his Mar-a-Lago resort. (AP Photo/Patrick Semansky)

Ailan Evans 

The share price of the owner of former President Donald Trump’s social media venture Digital World Acquisition Corp. rose as much as 1,657% on Friday, two days after Trump announced its launch.

The company, a special purpose acquisition company (SPAC) listed on the NASDAQ exchange as DWAC, will merge with Trump Media and Technology Group to launch a new social media, news and entertainment platform, Trump announced Wednesday. SPACs are a type of corporation used to buy private businesses and secure investor funding without the private companies themselves going public.

The share price rose over 350% Thursday and climbed over 1,600% Friday morning to a roughly $175 share price before settling back down to around $90 a share by Friday afternoon.

The new social media platform, TRUTH Social, is envisioned by Trump as a way “to stand up to the tyranny of Big Tech,” according to an announcement.

“We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced,” Trump said. “This is unacceptable.”

The company had “at an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 Billion,” according to the announcement.

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News Talk Florida: News Talk Florida Staff
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