Trump media venture under scrutiny by market regulators
ABC News
Regulators are asking questions about the deal to bring Donald Trump’s new social media company to the stock market, one that has attracted both legions of fans of the former president and people looking to make a quick profit
NEW YORK -- Regulators are looking into the deal that would bring Donald Trump's new social media company to the stock market, one that has attracted both legions of fans of the former president and people looking to make a quick profit.
The company partnering with Trump Media & Technology Group acknowledged the inquiries in a filing it made with regulators on Monday. It also gave some financial forecasts for the company, which is hoping to rival Twitter and other platforms that banned Trump, along with Netflix and other streaming video services. It said over the weekend that it's lined up $1 billion in promised investments from a group of unnamed institutional investors.
The regulatory questions focus on the October announcement by Trump's media venture that it would merge with Digital World Acquisition Corp. That company had launched on the U.S. stock market three weeks earlier with the sole purpose of finding a privately held company to buy. It's often referred to by its trading symbol of “DWAC.”
DWAC said Monday that it is cooperating with "the preliminary, fact-finding inquiries" by the the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
