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The Uncertain Future of Trump Media: Will the Merger Close or Collapse?

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In October 2021, the media world was abuzz with news of former President Donald Trump’s plans to launch his own social media platform called Truth Social. The ambitious project was set to merge with Miami-based company Digital World Acquisition, creating a tech titan worth millions. However, almost two years later, the merger is facing a critical shareholder vote that could determine the fate of Trump Media & Technology Group. This article delves into the challenges and uncertainties surrounding the merger and explores the potential consequences for both Digital World and Trump Media.

The Rise and Fall of the Trump Media Merger

When Trump Media announced its plans to merge with Digital World Acquisition, the news sent shockwaves through the stock market. With an initial valuation of $875 million, the merger promised to create a powerful tech company. However, the road to completion has been riddled with obstacles and setbacks. Digital World has faced allegations of violating SPAC rules and has been embroiled in legal trouble, including insider trading charges and accusations of misleading investors.

The merger’s troubles have reached a critical juncture as Digital World approaches a September 8 deadline for the merger to close. If the shareholder vote fails to extend the deadline, Digital World will be legally obligated to liquidate and return the $300 million it raised to its shareholders. Trump Media, on the other hand, would be left with nothing from the transaction. The stakes are high, and the future of Trump’s media venture hangs in the balance.

The Shareholder Vote: A Make or Break Moment

The upcoming shareholder vote is crucial for Digital World and Trump Media. At least 65% of Digital World’s 400,000 shareholders must cast their votes by September 8 to decide whether to extend the merger deadline for another year or let the deal expire. In previous votes, shareholders have approved deadline extensions, but the unique composition of Digital World’s shareholder base could complicate matters.

Unlike traditional SPAC investors, Digital World’s shareholders are predominantly small-time “retail” investors who may have bought shares out of loyalty to Trump. Many of these investors may not be closely following the developments surrounding the merger, which raises concerns about their level of participation in the critical vote. The outcome of the vote will determine whether the merger proceeds or if Digital World faces liquidation.

The SEC’s Role in the Merger Saga

The Securities and Exchange Commission (SEC) has also played a significant role in the Trump Media merger saga. The SEC has investigated Digital World for alleged material misrepresentations made to investors, a violation of federal antifraud guidelines. In July, Digital World agreed to pay an $18 million settlement to resolve the SEC’s charges. The company committed to revising its registration statement to correct inaccuracies but has yet to resubmit the revised document.

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The SEC’s involvement has further complicated the merger process and raised concerns about the transparency and compliance of the companies involved. Trump Media has accused the SEC of sabotaging the merger for political reasons, while the SEC maintains that it has acted in accordance with its regulatory responsibilities. The SEC’s scrutiny and the unresolved issues surrounding the merger have added to the uncertainty surrounding Trump Media’s future.

The Potential Consequences of the Merger’s Failure

If the merger fails to close, the consequences for both Digital World and Trump Media could be significant. For Digital World, it would mark a financial fall from grace for a once-promising SPAC. The company’s share price, which initially peaked at $175, has plummeted to around $14, erasing much of its early market enthusiasm. Failure to extend the merger deadline would lead to liquidation, with shareholders receiving only $10.24 per share, far below their initial investment.

For Trump Media, the collapse of the merger would be a significant setback. The company, which had projected a user base of 41 million by the end of the year, has struggled to attract a substantial following. Truth Social has lagged behind established platforms like Twitter and Facebook in terms of user engagement and reach. The failure of the merger could further hamper Trump Media’s growth and limit its ability to compete in the crowded social media landscape.

The Future of Trump Media and Truth Social

While the potential failure of the merger poses challenges for Trump Media, the company’s fate is not entirely dependent on the merger’s outcome. If the merger collapses, Trump would retain his 90% ownership of Trump Media. The former president has yet to comment on the upcoming shareholder vote or the future of Truth Social, his much-anticipated social media platform. The platform itself has faced criticism for its relatively small user base and lack of significant growth.

Trump Media’s other planned offerings, such as a subscription video service called TMTG+, have yet to materialize. The company’s value has fluctuated significantly since its inception, with financial disclosures ranging from $5 million to $25 million. The uncertainties surrounding Trump Media’s future highlight the challenges of launching a new media venture and the complexities of navigating the ever-evolving digital landscape.


The Trump Media merger with Digital World Acquisition hangs in the balance as the companies face a critical shareholder vote. The outcome of the vote will determine whether the merger proceeds or if Digital World is forced to liquidate, leaving Trump Media with nothing. The challenges and setbacks faced by both companies, including SEC investigations and legal troubles, have added to the uncertainty surrounding the merger. The future of Trump Media and the success of Truth Social remain uncertain, highlighting the difficulties of launching a new media venture in a competitive and rapidly changing digital landscape.


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