Trump’s media merger not yet dead after deal gets lifeline

By Matt Egan, CNN Business

Digital World Acquisition Corp., the blank check company seeking to merge with former President Donald Trump’s media business, said Friday it would avoid imminent liquidation.

digital world did not receive shareholder approval before Thursday’s deadline to extend its merger agreement.

However, the shell company said in a Friday filing that it was able to buy extra time because its sponsor, ARC Global Investments II, deposited nearly $3 million into the company’s trust account to exercise an option. to unilaterally extend the merger agreement for three months.

If that hadn’t happened, the whole deal could have unraveled, forcing Digital World to return the roughly $300 million it raised. This money is intended to finance the merger with the owner of Truth Social, Trump Media & Technology Group. A liquidation would also have threatened the additional billion dollars the Trump media company has raised.

Digital World is still urging shareholders to back a proposed one-year extension to its merger agreement. A special meeting of shareholders has been adjourned to October 10.

The controversial merger was blocked by legal control. The Department of Justice and the Securities and Exchange Commission are investigating.

Digital World said these investigations had blocked the possibility of closing the deal, and Patrick Orlando, the CEO of Digital World, had pleaded with shareholders to grant the merger extension. But Trump posted a message on Truth Social last weekend suggesting he was not concerned about the fate of the deal.

“The SEC is trying to harm the company that funds (SPAC),” Trump wrote. “I don’t need financing, ‘I’m really rich!’ Private company anyone???

Truth Social, the Twitter-like social network at the heart of Trump’s media adventure, remains unavailable on Google’s Android app due to flaws in the app’s content moderation systems, a Google spokesperson told CNN last week.

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Daniel C. Williams