Is Digital World Acquisition Corp the next SPAC success story?
This company is a Special Purpose Acquisition Company (SPAC), a so called “blank check” company that exists in order to merge with another company and take it public without the underwriting that normally comes with an IPO.
DWAC has merged with Donald Trump backed social media platform Truth Social. There is very little data on DWAC available to do a proper fundamental analysis.
Many of us have opinions about Donald Trump, but the fact is that he was very popular on social media at one point, and if he is on Truth Social, it will be a very popular place on the ‘Net.
Truth Social has had a rocky launch, and it still is not up and running. We will be having a very contested slate of mid term elections quite soon, and Truth Social could be a major media player if it is up and running by then.
Many companies became public through SPAC deals in 2020. It turned into a bit of a bubble, and everyone wanted in. A few bad deals gave all the SPACs a bad reputation. SPACs can be a great way to quickly bring value to the shareholders under the right circumstances. DWAC is very speculative, but the fact remains, Trump is popular on social media and if they get Truth Social up and running, there will be money coming in droves.