Trump SPAC Digital World Acquisition ( NASDAQ: DWAC ), which is taking Trump's social media company and Truth Social app public, fell 2.5% ahead of a Monday vote on the company's efforts to go public.
A shareholder vote to extend the time Digital World ( DWAC ) has to complete a deal to take Trump's social media company public is scheduled for Monday, after it was adjourned a few times last month. The meeting was adjourned because DWAC was unable to get enough shareholders needed to approve the vote.
Digital World ( DWAC ) shares have dropped 5% since Tuesday after billionaire Elon Musk changed his mind and said he wanted to buy Twitter ( TWTR ) for its original $44 billion price tag. Investors likely see the possibility that Trump - who had about 80M Twitter followers before he was banned from that platform - could return to Twitter if Musk allows the former president to rejoin.
Musk to a jab at Truth Social, where the former President has 4.15 million users on his account, in a F inancial Times interview on Friday.
"It is essentially a right-wing echo chamber," Musk told the paper. "It might as well be called Trumpet."
Trump said in April he wouldn't return to Twitter ( TWTR ) even if Musk reinstated his account. In May, Musk said he would reverse Trump's ban from the platform if the business mogul succeeded in taking over the social media platform with his $44 billion deal.
Digital World ( DWAC ) has struggled to get the necessary 65% of shareholders needed to approve the combination with Trump's media company.
DWAC has an additional lifeline to survive after SPAC's sponsor deposited $2.88 million last month to extend the time company needs to complete its deal by three months until Dec. 8. This is the first of two three-month extensions under the company's governing documents. DWAC has warned previously that if the deal isn't extended, the SPAC may be forced to liquidate.
Digital World ( DWAC ) shares have plunged 83% since the shares hit a high of $97 in early March. The stock has fallen amid concern about a Musk-led Twitter, as well as worries about several regulatory probes.
Last month, DWAC disclosed that it has received termination notices from PIPE investors representing $138.5 million of the $1 billion PIPE investment disclosed in December.
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Trump SPAC Digital World falls ahead of Monday vote, Musk Twitter takeover