…In simplified form, the process involves 2 basic parties. One is a private company that wants to go public. The other is a #ShellCompany that is already trading on the #StockMarket but has no operations — just a pile of cash that it can use to acquire a business. #SPAC shells are often called “#BlankCheck” companies because their investors have given them a certain amount of money but have no idea yet who the check will be made out to.

#criminal #Trump #law #FEC #SEC
#VoteBlue #Harris2024

Celebrities & athletes were looking to join the frenzy, from Shaquille O’Neal to Martha Stewart. Even if their business plans were fundamentally stupid, even if mom-&-pop investors would later lose nearly all their money, the people who got in on a #SPAC at the beginning could make a pile.

#Fraud, acc/to the #SEC, began almost immediately.

#criminal #Trump #law #FEC
#VoteBlue #Harris2024

Taking #Trump public may not have been possible w/o the rise of an obscure financial instrument, the special-purpose-acquisition company [#SPAC]. In 2020, the pandemic stock market was surging, & the perception among entrepreneurs was that SPACs let private companies get in on the action quicker & w/less #oversight than the traditional way of going public, the #IPO.

#criminal #law #FEC #SEC
#VoteBlue #Harris2024

#Trump Media & Tech stock fell 18%, erasing hundreds of millions from its *market value* — & putting a dent in Trump’s majority stake, worth >$3B. Since a surge in its 1st days of trading as #TrumpMedia, which lifted the value of the co to ~$8B at one point, the company’s shares have dropped by >50%.

Trump Media was expected to register the potential sale of new shares after the completion of its merger w/ #DWAC, a #ShellCompany known as a #SPAC.

@zeitbot

Jeder aufmerksame und fürsorgliche #Analyst wird #Anleger vor dieser #Trump-#Aktie warnen, da die Firmen dahinter Verluste einfahren, aber gibt es solche Analysten? Wird es vielleicht sogar eine goldene #Rentenaktie? ;-)

The vote Fri by investors in #DWA authorized the #SPAC, to merge w/ #TrumpMedia & #Tech Grp as part of a process that will avoid a more traditional #IPO.

#Trump will own ~60%, which at DWA’s current share price would be worth ~$3.3B. He & other investors could earn tens of millions more shares through an “earnout” provision tied to the stock’s performance, DWA said in an #SEC filing.

The merger will net TrumpMedia $300M that DWA initially raised from investors.

After #Trump was booted from the #birdsite following the #Jan6, 2021, #insurrection, 3 men played pivotal roles in building & promoting #TrumpMedia as an online challenger [] against the “cancel culture” of #BigTech: #AndyLitinsky & #WesMoss, fmr “Apprentice” contestants who co-founded the company & launched Truth Social; & #PatrickOrlando, who as chief exec of #DWA, a #SPAC [#BlankCheck], offered Trump’s company a path to investor #cash.

#law
https://masto.ai/@Nonilex/112130283180375331

@aristeon89 @uspolitics @politicalscience @geopolitics @histodons @history @sociology

COULD THIS MERGER GIVE #TRUMP THE $500 MILLION HE NEEDS?

8/14

We are not experts on #SPAC s, but our gut feeling is that a company whose only actual asset (other than a bank account) is Trump's boutique #socialmedia platform might not be worth $5½ billion. Remember, this is a publicly traded company and is expected to make a #profit.

#DigitalWorldAcquisition, the #SPAC that 1st launched the merger for #Trump Media & Technology Group in 2021, said in an #SEC filing late Wed that the SEC had signed off on its registration stmnt & that DWA would announce a shareholder meeting w/in 2 days to vote on the #merger’s adoption. DWA shares climbed Thurs morning, to ~$50.
The approval is a victory for Trump, who will hold >78M shares in the post-merger co, a filing shows —a stake that, at current prices, would be worth >$4B
#tech #law