Donald Trump-Owned Truth Social's Parent Company May Go Public After DWAC Settles Securities Fraud Charges

Trump Media and Technology Group (TMTG), the parent company of the Truth Social app, is finally having a shot at going public following a settlement of securities fraud charges against Digital World Acquisition Corp. (DWAC), Quartz reports.

Despite the $18 million fine imposed on DWAC, the company is permitted to finalize its $300 million deal with T.M.T.G. The companies have time until Sept. 8 to close their deal, unless they receive approval from shareholders to extend the deadline.

Regulatory Hurdles Overcome: The U.S. Securities and Exchange Commission (SEC) had accused D.W.A.C. of illicitly holding merger talks with TMTG prior to its own initial public offering (IPO), a violation of federal laws.

“DWAC failed to disclose its discussions with TMTG and failed to disclose a material conflict of interest of its CEO and Chairman,” said Gurbir Grewal, SEC enforcement director.

See Also: Larry Summers Says Team Biden’s Crackdown On M&A Almost Like A War On Business

Insider Trading Charges: This settlement follows less than a month after the SEC and U.S. Department of Justice charged three individuals with illegally trading DWAC stock, leveraging insider knowledge of the impending merger with Trump’s media company. The accused, who allegedly made $22 million from the scheme, face potential decades-long prison sentences if convicted.

Truth Social’s Journey: Truth Social was launched by Trump in February 2022, a year after he was banned from Twitter for allegedly inciting violence at the U.S. Capitol. Despite an invitation from Twitter’s new owner, Elon Musk, Trump has remained exclusive to Truth Social, where he is generally obligated to post first.

Read Next: Microsoft-Activision Deal: FTC Agrees To Pause Trial, Opening Door For Settlement Talks

Image via Shutterstock


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Posted In: NewsSocial MediaIPOsTechMediaGeneralDonald TrumpDWACTMTGTRUTH SocialUnited States Securities and Exchange Commission
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