The SPAC (special purpose acquisition company) put together to both fund Trump's social media company has returned over $500 million in investor's money. Trump Media's inability to provide adequate financial disclosures made the investment impossible. Investors actively declined to invest in Trump's social media company.
CEO Devin Nunes, who once lost a fight with a fictional cow, is attempting to cast this failure-to-launch as good news for Trump World. Nunes is not very convincing.
Digital World raised the $1 billion PIPE last year but failed to complete the merger with TMTG by a September 2022 deadline, as U.S. financial regulators held up the deal over Digital World's disclosures to investors. That gave the PIPE investors the right to cancel their commitments.
TMTG CEO Devin Nunes said in a press release that terminating the PIPE was "in the best interest of TMTG's equity holders and completing our merger with DWAC as soon as possible."
A TMTG spokesperson said in a statement on Thursday that the PIPE's termination was "a key step toward completing our merger." She did not respond to a question on why terminating the PIPE ahead of the merger was positive for TMTG.
CEOs of microblogging websites seem to have a hard time stepping out of the shadow of their bosses. When they do, they frequently sound like idiots.
