Former President Donald Trump is in for a tumultuous October as the Biden-Harris campaign has not only outshone the former president on his own social platform, Truth Social, but the special purpose acquisition company (SPAC) taking Trump's site public has also opted to return a whopping $1 billion to its shareholders.
Setting a precedent on the Truth Social platform, the Biden-Harris campaign gained a following of 28,300 within days of its account creation, eclipsing the 23,800 followers of Trump's Team Trump account. The new account, Biden-Harris HQ, was conceived as a facetious jab, as expressed by the Biden campaign's digital rapid response team, to bring a semblance of "truth" to Truth Social, an endeavor Trump initiated after his Twitter ban.
Trump, despite his initial follower advantage with 6.46 million followers on his own account, saw his campaign account overshadowed by that of Biden's.
Meanwhile, Digital World Acquisition Corp (DWAC), the SPAC pivotal in taking Trump Media & Technology Group (TMTG) public, disclosed its decision in an SEC filing to refund $533 million to investors following termination notices amounting to $467 million. That decision was seen as a setback, but DWAC CEO Eric Swider said the deal aids the company in fostering a "sustainable business model" for Trump's media venture.
Former Congressman and current TMTG CEO Devin Nunes echoed Swinder, saying the move was beneficial for TMTG equity holders. However, it casts a cloud of uncertainty on the financial sustenance of TMTG post-merger, a process already beleaguered by multiple delays. The loss of funding—a significant setback—has undoubtedly made the road to the merger more precarious.
The merger, once seen as a promising venture with shares of DWAC skyrocketing to just under $100, now languishes with the stock trading under $15.
Neither Digital World Acquisition Corp nor Trump Media & Technology Group immediately responded to Newsweek's request for comment.
The stock's fate has been juxtaposed against the numerous legal battles Trump is in, including a $250 million fraud civil trial. The allegations, if substantiated, could potentially tarnish the brand value, a concern yet to manifest as DWAC stock surged after Trump's indictment.
The DWAC setback arrives amidst Trump's endeavor to reposition himself in the social media space through Truth Social, aiming to combat tech giants like X, formerly Twitter. The platform's growth projection, as stipulated by Trump Media, hinges on achieving an expansive user base—81 million—and substantial revenue per user by 2026.
As the 2024 elections loom, the social media warfare and the financial quagmire surrounding TMTG delineate a challenging trajectory for Trump. Biden's social media coup in the backdrop of Trump's financial and legal turmoil presents a compelling narrative in the run-up to the elections.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Aj Fabino is a Newsweek reporter based in Chicago. His focus is reporting on Economy & Finance. Aj joined Newsweek ... Read more
