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LetMyPeopleVote

(144,005 posts)
Mon Jun 27, 2022, 02:59 PM Jun 2022

Digital World board members get subpoena over Trump's social media deal

These are DOJ subpoenas and are in addition to the SEC subpoenas. This will be fun to watch



https://www.reuters.com/technology/digital-world-board-members-get-subpoena-over-trumps-social-media-deal-2022-06-27/

- Blank-check firm Digital World Acquisition Corp (DWAC.O) said on Monday each of its board directors had received subpoenas from federal prosecutors over the company's merger plans with former U.S President Donald Trump's social media firm.

The federal probe is the latest setback to Trump's efforts to take Trump Media & Technology Group Corp (TMTG), the creator of social media platform Truth Social, public. TMTG in October agreed to merge with Digital World and was expecting the deal to close by the second half of this year. .....

Earlier this month, the company reported that the U.S Securities and Exchange Commision (SEC) and the Financial Industry Regulatory Authority, which have been probing its deal with TMTG since late last year, had also sought more information
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Digital World board members get subpoena over Trump's social media deal (Original Post) LetMyPeopleVote Jun 2022 OP
Wonkette's legal reporter Liz Dye has a post about this gratuitous Jun 2022 #1
TY! Cha Jun 2022 #3
This seems like Good News! Rt💙TY! Cha Jun 2022 #2
This makes me smile LetMyPeopleVote Jul 2022 #4

gratuitous

(82,849 posts)
1. Wonkette's legal reporter Liz Dye has a post about this
Mon Jun 27, 2022, 03:55 PM
Jun 2022

Link to story here.

Company That Wants To Buy Trump's Truth Social Getting So Many Subpoenas It's Gonna Get Sick Of ... You Know

By Liz Dye

[Snippage]

DWAC is a special purpose acquisition company, AKA a SPAC. It exists to hoover up a bunch of cash, take itself public, and then buy a private company, which is then spared the indignity of disclosing its books as it would have to if it went public on its own. If you were, say, a Dollar Store version of Twitter with no apparent ability to compete with established social media companies and a pitchman who is toxic to half of America (and more or less all of not-America), a SPAC would be a pretty good way to gin up cash. Because Donald Trump may be a shitty businessman, but his fans are a bunch of rabid maniacs who have demonstrated their willingness to open their wallets on command for Dear Leader.

Which is how DWAC's stock rocketed from $10 to a brief high of $175 shortly after opening, based solely on a MS Paint-quality pitch deck valuing the company at $1.7 billion and promising to take on CNN, Disney+, iHeart Media, Google, Amazon, and Stripe under the bold leadership of CEO Devin "Cowpoke" Nunes. As of this writing, it's valued at about $25 per share, with a market capitalization (i.e. the value of all the outstanding shares) of $930 million.

The problem is that you can't play fast and loose with the Securities and Exchange Commission the way you can when you're hyping Florida real estate. If you do the equivalent of, say, lying about how many floors your building has, those government bean counters tend to notice, and they get all pissy about it.


Go read the whole thing. It's not clear if Truth Social [sic] is in any hot water, but it would appear that this money grab by the former guy, Devin Nunes, and some others won't work out quite the way they envisioned it.
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