The share price of Digital World Acquisition Corp., the company launching former President Donald Trump’s new social media and entertainment venture, rose nearly 190% following Trump’s announcement of his plans to develop the tech platform.
The company, listed on the NASDAQ stock exchange as DWAC, is a special purpose acquisition company (SPAC) that acts as a public shell corporation to acquire private companies and list them publicly on a stock exchange. The company entered into a merger agreement with Trump Media and Technology Group (TMTG) in order to raise public funding for Trump’s social media venture, according to a press release.
Trump announced Wednesday that he was launching a new social media platform called TRUTH Social intended to “fight back” against major tech companies that banned the former president earlier this year. The new venture will also include on-demand video entertainment and news services.
Republican presidential candidate Donald Trump gives two thumbs up to the crowd during the evening session on the fourth day of the Republican National Convention on July 21, 2016 at the Quicken Loans Arena in Cleveland, Ohio. (Photo by Chip Somodevilla/Getty Images)
“I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech. We live in a world where the Taliban has a huge presence on Twitter, yet your favorite American President has been silenced,” Trump said in the announcement. “This is unacceptable.”
The DWAC stock rose nearly 190% following the former president’s announcement, reaching a share price of over $29 as of early afternoon Thursday. Trading of the stock was temporarily halted due to volatility, according to CNBC.
DWAC is currently the most traded stock listed on the NASDAQ, according to the exchange’s website. (RELATED: ‘If This Were The Trump Administration’: Former Kamala Harris Adviser Goes After Biden’s White House For COVID-19 Protocols)
The company was valued “at an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 Billion,” according to the press release announcing the new venture.
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