There ain't much info about Trump's new venture...except that its mission is to "fight back against the ‘Big Tech’ companies of Silicon Valley".
Background: Former US President Donald Trump owns a few companies. Trump Financial...Trump Sales and Leasing...The Trump National Doral gold resort...And now, Trump Media & Technology Group.
What happened: That last one is real new. The world found out about Trump's new venture last week, and there ain't much info about it. Except, that its mission is to "create a rival to the liberal media consortium and fight back against the ‘Big Tech’ companies of Silicon Valley".
What else: Trump's company revealed it was going public via a SPAC (special purpose acquisition company) called Digital World Acquisition Corp. That SPAC saw its shares soar as high as 284% and its market cap rise to US$1.64 billion.
💡A special purpose acquisition company (aka SPAC) is a company formed specifically for the purposes of raising money. And it raises this money through an initial public offering.
💡It may sound weird but at the time of the SPAC’s IPO (ie Digital World Acquisition Corp), it has no existing business operation or even targets for acquisition. Essentially, they are just a blank cheque.
💡While normally, SPAC companies will acquire another company with a history or growth and has runs on the board (think: WeWork) - Trump's company had zero history, so we'll need to see if this is built to last...or Gamestonk #2.
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