Donald Trump wants to build his own social network and collects money for it. However, investigations by US tax authorities are now pending.
New York – After being banned from the popular social networks Twitter, Facebook and Youtube, Donald Trump is working on his own online network. His future mouthpiece is called “Truth Social” and is intended to be an alternative to the “tyranny” of the large digital companies. The start is planned for the beginning of 2022.
Donald Trump: US authorities require information about the IPO of “Truth Social”
The former President of the USA founded his own company for the social media: “Trump Media & Technology Group” (TMTG). Now, however, there are obstacles: The responsible financial authorities are investigating the planned IPO of Donald Trump’s social network. The partner company Digital World Acquisition Corp (DWAC), through which Donald Trump is already collecting money on the stock exchange, received requests for information from the Securities and Exchange Commission and the Financial Market Authority Finra. The SEC requested information on board meetings and the identity of certain investors. The Finra, however, requested information on previous share activities of DWAC. It is about trading in DWAC shares before the announcement that it will work with TMTG, reports Der Spiegel.
The company that is being scrutinized by the US authorities is a so-called Special Purpose Acquisition Company (Spac). The company of the investment banker Patrick Orlando does not have its own product, but serves as an empty shell, which is already traded on the stock exchange. Donald Trump’s media company TMTG is to be brought to the US technology exchange Nasdaq via the Spac. When going public through this back door, Trump can bypass several requirements. However, IPOs with the help of Spacs in the USA are not unusual.
Donald Trump: Funding for “Truth Social” is going well
The announcement that the Spac DWAC was to merge with TMTG to float it on the stock exchange caused a run on the shares of the Trump company in October 2021. The share had meanwhile increased in value from $ 10 to a high of $ 175 in October. On Monday (December 6th, 2021) the share was $ 43. DWAC has already raised $ 293 million this way. Last weekend, Trump was able to report another success: An investor is said to provide Donald Trump with one billion dollars. (Max Schäfer with AFP)