Trump SPAC DWAC Soars After Regulators OK Merger

Shares of Digital World Acquisition Corp (DWAC) spiked Thursday morning after regulators approved a plan for the SPAC to merge with the parent company of "Truth Social" (former President Trump's social media platform).

According to a regulatory filing, the Securities and Exchange Commission approved the merger Thursday morning, and Digital World expects to announce within two business days, the date of the special meeting of its stockholders.

"This achievement marks a significant milestone for us," DWAC CEO Eric Swider said in a statement, adding that:

TMTG CEO Devin Nunes said:

"Truth Social was created to serve as a safe harbor for free expression and to give people their voices back. Moving forward, we aim to accelerate our work to build a free speech highway outside the stifling stranglehold of Big Tech."

Nunes continued, "I'd like to thank everyone who has believed in our mission and helped bring us to this moment: DWAC and its CEO Eric Swider, DWAC shareholders, the TMTG Board of Directors, the entire TMTG staff, and the whole community of Truth Social users."

Shares of DWAC had plunged since hitting a high of $97 in March of 2022 amid delays surrounding the company's financial reporting and other issues.

In early trading, DWAC opened up more than 20%, to $52.50, after hitting $55 in pre-market trading.

Digital World also amended its registration statement this week to include new proposed board members, among them Robert Lighthizer, who served as US trade representative under Trump, and Linda McMahon, the head of the Small Business Administration under Trump and one-time CEO of World Wrestling Entertainment Inc.

Shareholders will still need to greenlight the deal, which faces a September deadline.