Introduction
Digital World Acquisition Corp. recently provided an update regarding its merger with Trump Media and Technology Group, Donald Trump’s social media venture. The amended filing with the Securities and Exchange Commission reveals new legal challenges and significant changes to bylaws.
Legal Challenges and Extended Timeline
The special-purpose acquisition corporation disclosed lawsuits aiming to halt the merger alongside alterations to its bylaws specifying litigation procedures. Furthermore, the deadline for completing the merger has been extended to June 8, offering the company additional time for the transaction.
Lawsuit from Former Chairman
Patrick Orlando, former DWAC chairman, filed a lawsuit seeking modifications to the proposed share allocation. His ARC investment vehicle demands a higher number of shares compared to DWAC’s current offer, creating a substantial discrepancy in share distribution.
Recent Developments
Additionally, updates from Trump Media’s co-founders, Andy Litinsky and Wes Moss, have emerged. Their investment company, United Atlantic Ventures, has raised concerns and threatened to impede the merger progress. Litinsky and Moss, known for their appearances on Trump’s “The Apprentice,” play a pivotal role in the negotiation process.
Stay informed with the latest developments in the DWAC and Trump Media merger by following regulatory filings and industry updates.
UAV Accuses Trump of Diluting TMTG Shares
Allegations and Motions
UAV has also sent letters to DWAC, asserting that a previous agreement with Trump from 2021 remains valid and grants them the right to appoint two directors to the board.
Merger Challenges
Potential Impact
With DWAC shareholders set to vote on the merger in March, Trump’s stake could exceed $3 billion based on current valuations. This comes at a time when Trump faces over $500 million in civil judgments in New York.
In response to UAV’s legal action, DWAC warned of significant legal expenses, management distractions, and potential adverse effects on the business and financial well-being of TMTG and/or the combined entity.
DWAC’s stock experienced a 3.8% decline premarket but has surged 135% year-to-date, outperforming the S&P 500, which has gained approximately 7%.
