Truth Social's funding scheme is collapsing

As a critical deadline for SPAC Digital World Acquisition Group's planned merger with failed insurrectionist Donald J. Trump's Trump Media and Technology Group approaches, the acquisition corp's shareholders don't seem willing to continue. Also, recently in the news, TMTG can't pay its bills.


The special purpose acquisition company had a Sept. 8 deadline to take former President Donald Trump's media company and its Truth Social platform public. The SPAC has previously warned that a failure to extend the merger deadline could force DWAC to liquidate.

Earlier in the day, DWAC's shares had plunged after Reuters reported that it failed to get enough shareholder votes to extend the deadline for its merger with Trump Media and Technology Group. The merger would give Trump's company a cash infusion. Trump created Truth Social after he was banned from Twitter following the Jan. 6, 2021, Capitol riot.

Trump Media denied reports of financial strife that surfaced at the end of August. Trump Media and Technology Group told CNBC in a statement that Truth Social is continuing to grow and is bolstered by the recent addition of advertising to the platform.