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Approved: DWAC-TMTG Merger Valued at $1.1 Billion, Sending Shockwaves in De-SPAC Market

Trump Media and Technology Group Receives Nasdaq Listing Approval; Making a Billion-Dollar Wager on a Potential Second Trump Term

Approved: DWAC-TMTG Merger Valued at $1.1 Billion, Sending Shockwaves in De-SPAC Market

The proposed merger between Digital World Acquisition (DWAC) and Trump Media & Technology Group (TMTG) has been approved by DWAC shareholders on Friday. TMTG is responsible for the Truth Social platform, which was created by former president Donald Trump. The merger values TMTG at an enterprise value of about $1.1 billion at a transaction price of $10 per share. The combined company will soon trade under the ticker DJT, possibly as early as this week.

This merger has gained significant attention due to high-profile legal issues, intense trading activity, and Trump’s recent win in the Republican primary. Many view this stock as a bet on Trump winning the US presidency in November 2024. However, de-SPACs are facing a challenging environment, with past mergers over the last year averaging a -59% return. Despite this challenge, Digital World Acquisition’s stock has shown remarkable performance, rallying 111% year-to-date and closing at $36.94 on Friday, well above the offer price pre-merger. This makes it one of the few SPAC stocks to trade substantially higher post-merger.

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