Trump’s unusual media network announcement got right here with a notion to head public by strategy of SPAC

Used President Trump closing night time presented plans to launch a digital media network known as “Fact Social,” and said it will most likely presumably well presumably amble public by strategy of a SPAC known as Digital World Acquisition (Nasdaq: DWAC).

What to take hang of: To this level, it is a shaggy dog memoir. The click launch didn’t hang even traditional data, such because the unusual firm’s CEO. In any case, the true execs talked about are Trump (as chairman) and outmoded TV producer Scott St. John as head of a subscription streaming provider.

  • There is no PIPE financing disclosed, even supposing redemptions would possibly perchance presumably well eat into Digital World’s $293 million in reserves (caveat: the SPAC is hovering in early procuring and selling, doubtless on retail demand from Trump followers).
  • Oh, and there is a mention of the total thing being fee $1.7 billion, “depending on the efficiency of the stock trace put up-replace combination” — with out any crucial parts of what form of stock efficiency would trigger that “extra earnout,” or if it’d be Trump himself who advantages.
  • Digital World filed an 8-Sufficient this morning with the SEC, nonetheless with out the ragged investor presentation linked.

There is a 22-page pitch-deck on the unusual web residing for Trump Media Community, although it be mighty more sizzle than steak. And it appears to be very familiar to a deck Axios’ Kia Kokalitcheva reported on earlier this year (one pace is in actuality the same).

  • A “pre-say” option for Fact Social is supplied in the App Store, with a screenshot that veritably appears to be fancy reskinned Twitter. The click launch says the firm plans to launch in early 2022, which suggests the firm would ogle to head public with out a commercialized product.

Relating to the SPAC: Digital World was once formed earlier this year by Patrick Orlando, who has raised several SPACs nonetheless has yet to efficiently purchase a firm. He did include one merger signed, with Giga Energy, on the alternative hand it was once later terminated.

  • Its CFO is a member of Brazil’s National Congress, and an ally of Jair Bolsonaro. There don’t seem to be any girls in its exec ranks or on its board.

Spokespeople for Trump and the SPAC declined to order past the press launch.

The underside line: This looks to be a shell firm procuring a shell firm.

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