The company funding Donald Trump’s social media app Truth Social warned that the company could suffer if the former president’s approval wanes.
Digital World Acquisition Corp, the blank-check company that agreed to merge with Trump Media and Technology Group, said in a filing Monday that it believes that a shift in Trump’s approval ratings could hurt the company’s profitability. Trump’s popularity is being tested anew following the FBI investigation of his Mar-a-Lago residence.
“While TMTG believes there is sufficient demand for a true free speech platform, the image, reputation, popularity, and talent of its Chairman, President Trump, will be important factors to its success,” the filing states. It then pointed to a Hill poll from March 2021 alleging that only 30% would want to use a social media app connected to Trump, as well as an October 2021 New York Post poll noting that over 60% of Republicans would use such a platform.
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“In order to be successful, TMTG will need millions of those people to register and regularly use TMTG’s platform. If President Trump becomes less popular or there are further controversies that damage his credibility or the desire of people to use a platform associated with him, and from which he will derive financial benefit, TMTG’s results of operations, as well as the outcome of the proposed Business combination, could be adversely affected,” the filing adds. The blank-check company also noted the Securities and Exchange Commission and Justice Department investigations into the organization’s deal with TMTG as concerns.
The filing set a Sept. 6 shareholder meeting so investors in Digital World Acquisition can vote on whether to delay or maintain the Sept. 8 deadline for completing a merger with TMTG.
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While the Truth Social app experienced a rocky start in early February, it saw a surge of downloads in the days after the FBI raided Mar-a-Lago to seek whether the former president kept “highly classified” documents.
