Company buying Truth Social warns investors about Trump business failures
The company merging with Donald Trump’s social media company to take it public in a filing Monday warned about the former president’s previous failed business ventures.
In the registration filed by Digital World Acquisition Corp (DWAC) — a special purpose acquisition company that has raised over $1 billion — and Trump Media & Technology Group (TMTG), the groups also warned that the Securities and Exchange Commission could still halt the merger.
The merger document, known as an S4, details several risks related to Trump’s chairmanship of TMTG.
“A number of companies that were associated with President Trump have filed for bankruptcy,” the document warns, listing Trump Shuttle, University, Vodka, Mortgage and Steaks.
Among other risk factors included in the filing is that Trump is “involved in numerous lawsuits and other matters that could damage his reputation.”
The filing noted the former president is “generally obligated” to post on Truth Social, where he has roughly 2.7 million followers, and “not make the same post on another social media site for 6 hours.”
However, there is an exception to that requirement for “political messaging, political fundraising or get-out-the-vote efforts.”
Much of Truth Social’s appeal has come from Trump’s presence on the platform, which differentiates it from other “free speech” focused social media such as Parler or Gettr.
Trump was banned from most major sites, including Twitter and Facebook, for posts made shortly after the Jan. 6, 2021, insurrection at the Capitol.
Elon Musk has suggested that if his $44 billion deal to purchase Twitter is completed, he would unban Trump.
The former president has said he would not accept an invite back to Twitter in favor of staying on Truth Social.