Digital World Acquisition Corp. DWAC shares were advancing in premarket trading on Wednesday as traders took stock of an announcement from the Donald Trump-linked Special Purpose Acquisition Company.
What Happened: Digital World announced that it has terminated Patrick Orlando from his positions as chairman and CEO with immediate effect and appointed board member Eric Swider as interim CEO.
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The company reasoned that the move was in the best interest of its shareholders to select a new management team to execute an orderly succession plan and set strategic operating procedures for the company in this new phase, as it navigates through “unprecedented headwinds.”
The company has agreed to merge with Trump Media & Technology Group, the parent of the Truth Social platform, and even after a year and a half of the announcement, the SPAC deal hasn't been consummated yet amid regulatory scrutiny and discord with the shareholders.
The success of Truth Social as a platform hinges on Trump and, the former president, who was booted out of mainstream social media platforms after the Jan. 6 insurrection has now been welcomed back. Also, recently TMTG has found itself under scrutiny over taking money from sources having connections with Russian President Vladimir Putin.
Price Action: In premarket trading on Wednesday, Digital World stock moved up 2.71%, to $14 according to Benzinga Pro data.
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