a day after former u.s president donald trump announced plans of launching his media venture
including a social media platform named truth social it's been announced that the trump media
and technology group will go public through a merger mr trump's spokeswoman liz harrington
announced on twitter i know ironic that the tmtg will list on the nasdaq stock market
after a merger with digital world acquisition group the transaction values tmtg at up to 1.7
billion us dollars depending on the performance of the stock price after a business combination
trump's truth is to take an s-pac or special purpose acquisition company root one of the big
questions is whether that creates a problem for existing major social media platforms
like facebook and twitter according to reports the s pac has filed an 8k form with the securities and
exchange commission the ak form comprises merger details and is necessary for any deal to proceed
tmtg's initial enterprise value is 875 million us dollars and it could have a potential additional
own out of 825 million dollars mr trump's company is said to get 293 million dollars
from the s pac trust account however the final payout could vary as per how many redemptions
there are in the merger vote so why is donald trump launching truth social in a statement
mr trump said that he has stood up against the tyranny of big tech by launching truth social
part of the tyranny has been the crackdown on independent startup parlor which for weeks
was left without a web host with the tech space largely leaning left in terms of ideology and of
course there was also trump receiving bans on both of the major social platforms along with
a number of right-wing commentators on june 5 2021 facebook said that it had suspended
donald trump's facebook and instagram accounts for two years earlier in january this year
the former u.s president was barred indefinitely over his posts regarding the u.s capitol riots on
the 9th of january this year twitter suspended mr trump's account due to the capitol hill violence
the micro blogging website said that the decision was taken after a close review of his tweets
such bands once again raised questions around the impartiality of social media outlets like twitter
and whether they are meant to act as a platform or a publisher as the editorialization of content
would see them fit into the latter twitter has for example stated they have a duty of care to
users to prevent hate speech and speech that could lead to violence and the like yet incredibly the
taliban for example has a strong presence on the platform following the announcement of the
s-pac deal the new york stock exchange listed twitter and facebook stocks on the nasdaq are
facing resistance from investors at the time of this video twitter's stock was down by 0.7 during
pre-market hours and facebook stock was down by 0.2 on thursday although there's still some time
before the beta version of the truth social app is launched there are chances that the social
media platform could get a massive user base as trump and his political ideology continues to
see strong support especially in the wake of joe biden's presidency despite non-stop controversies
during his tenure as the u.s president mr trump actually managed to increase his vote share to 47
in 2020 up from 46 in 2016. he received 74.22 million votes the highest votes ever polled for
a losing candidate so it's fair to say if he launches a new social network 74 million would
likely be the sheer base rate in the us alone we could thus be looking at an equal tier player
to the big social platforms in the coming months if you enjoyed the information contained in this
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head across to the website kalkinemedia.com i'm james preston reporting for kalkine