Trump’s Social Media Venture Says It Has Raised $1 Billion

Dec 06, 2021

Trump's Social Media Venture Says It Has Raised $1 Billion

Donald Trump's new social media firm stated on Saturday that it had achieved an agreement to raise around $1 billion from undisclosed investors in order to float on the New York Stock Exchange.

The capital raising, which Reuters first revealed on Wednesday, demonstrated the ex-president's capacity to draw large sums of money due to his personal and political name. He's working on a social networking app called TRUTH Social, which should be available in a few weeks.

Digital World, the blank-check acquisition corporation that would take Trump's company public by listing it in New York, announced that it would contribute up to $293 million to Trump's media venture, bringing the overall earnings to around $1.25 billion.

Trump Media and Digital World told the media that the $1 billion will be raised through direct investment transactions from "various institutional investors." Requests for the names of the investors were ignored.

In October, Trump Media signed a contract with Digital World to go public for $875 million, including debts. Based on the price of Digital World shares at the close of trade on Friday, the social media company is now worth about $4 billion. The share price was scooped up by Trump followers and investors.

Many Wall Street organizations, such as mutual funds and private equity firms, passed on the PIPE chance. Hedge funds, family offices, and high-net-worth individuals were among the investors involved. Family offices run the fortunes of the very wealthy and their relatives.

Some Wall Street investors are skeptical about Trump's presidency. After his followers attacked the US Capitol on Jan. 6, he was blocked from major social media websites for fear of inciting future violence. The attack on the Capitol was predicated on unfounded allegations of extensive electoral fraud in the previous year's presidential election.

Trump stated on Saturday that Trump Media Technology Group's balance sheet is growing, putting the company in a better condition to battle Big Tech's despotism.

The agreement is also subject to regulatory review. Last month, Senator Elizabeth Warren requested Securities and Exchange Commission Chairman Gary Gensler to look into the future merger for possible securities law breaches related to disclosure. The SEC has refused to say if it intends to take any action.

According to Trump Media and Digital World, the per-share conversion price of the convertible preferred stock PIPE deal is a 20% discount to Digital World's volume-weighted average closing price for the five trading days leading up to Dec. 1, when Reuters broke the news of the capital increase.

If that price falls below $56 in the ten days following the merger with Digital World, the discount will increase to 40% with a $10 floor, according to the firms. On Friday, Digital World's stock closed at $44.97.

According to his company's website, Trump had 89 million followers on Twitter, 33 million on Facebook, and 24.5 million on Instagram at the time he was banned.

As Reuters reports, investors who attended the private investor tours were shown a demo of the anticipated social media app, which imitated a Twitter feed.

First-quarter rollout

Trump has hinted that he will run in the elections in 2024.

Before the Trump media agreement, special-purpose companies like Digital World had lost a lot of their attractiveness among ordinary investors. After the firms combined with SPACs failed to deliver on their high financial expectations, many of these shareholders were left with significant losses.

TRUTH Social is expected to be fully launched in the first quarter of 2022. According to news articles, this is only the initial phase of the Trump Media project, followed by the launch of a video-on-demand service called TMTG+, in which subscribers will be able to watch a variety of entertainment content, news, and podcasts.

Subscribe Our Newsletter

Mark Zuckerberg's Year of Hell. Zuck, Make Things Right Before It's Too Late!
Mark Zuckerberg’s Year of Hell. Zuck, Make Things Right Before It’s Too Late!

2022 was supposed to be the year of Mark Zuckerberg. But the CEO of social media giant Meta Platforms will probably want to forget it.

Companies
Twitter_Vs_Apple

Alexander

Twitter vs. Apple: Elon Musk Starts a War with Tech Giant

Elon Musk blasted Apple's monopolistic practices, saying the company had stopped advertising on Twitter and questioning whether Apple "hates free speech in America."

Companies
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Constantine

How Many Trading Days in a Year Are There?
Learn what a trading day is, how many there are in a year, and what factors influence the number of trading days in the framework of different markets.

discover
LocalMonero Alternatives

Nato

Top LocalMonero Alternatives to Consider in 2025

LocalMonero isn't your only option! Explore the best LocalMonero alternatives for peer-to-peer crypto trading, secure exchanges, and a seamless user experience.

Blockchain
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiriesb2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    MetaTrader vs cTrader: Which Trading Platform Shall You Choose?

    MetaTrader vs cTrader: The Full Breakdown

    Сonstantine

    Will Dogecoin Reach $1? Tokenomics and Price Analysis

    Will Dogecoin Reach 1 Dollar Analysis

    Сonstantine

    How to Get a Crypto Exchange License?

    How to Get Crypto Exchange License

    Сonstantine

    Best Crypto to Buy Now: Guide for Investors

    Best Crypto To Buy Now

    Hazem

    Grok vs ChatGPT: What’s the Best AI Assistant You Need in 2025

    Grok vs ChatGPT

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.