Trump Media's funding partner says it's returning $1 billion to investors, with many asking for money back
CBSN
The funding partner for Trump Media & Technology Group said that it will return the remaining $533 million of the $1 billion raised to finance the venture after investors canceled $467 million of commitments.
Digital World Acquisition Corp. (DWAC), a so-called special-purpose acquisition company, said in a regulatory filing that it has received termination notices from investors for $467 million of the funding. The remaining $533 million will be returned to investors, with DWAC CEO Eric Swider saying in a press release that the decision is a "positive development" as Trump's media group focuses on developing a "sustainable business model."
The loss of funding for DWAC appears to be a step backward for the prospective merger between the company and Trump's media outfit, which runs Truth Social, a social media service with a conservative flavor. When the merger was first announced in 2021, it sparked an 800% surge in DWAC's shares, prompting comparisons to meme stocks.
