Well, folks, things are not looking good at all for the merger between Digital World Acquisition
and the Trump Media and Technology company, which of course owns Truth Social. On Thursday,
it was revealed that three individuals with digital world acquisition had been indicted.
They were arrested for insider trading. The very thing that the Securities and Exchange
Commission had suspected all along. Here's what happened. For anybody that's not familiar
with it, this is a story that has been ongoing for well over a year. But basically investigators
at the S E C were looking into whether or not there was any kind of collusion between
digital world acquisition, the special, uh, spac, you know, whatever that those letters
stand for. Um, and Trump Media and Technology, which again owns truth social. Now, under
the rules for a spac, when you bring in investors, the investors have to come in and put their
money in.
And once all the money is in and everything's closed, at that point, you determine what
company you are going to target. You cannot, under any circumstances, legally have a target
before you have all of the money. Now, seems weird, maybe, I guess, I don't know. Not a
big finance guy, but those are the rules. And so, according to the arrest of these three
individuals, they had been fed information suggesting that the target of the SPAC Digital
World acquisition was in fact Trump media and technology. And they invested millions
and made millions more. Let me read this from the Associated Press about what happened.
According to the indictment pertaining to the media company, the men were invited to
invest in the Special Purpose Acquisition Company, spac, that's what it stands for,
digital World Acquisition. And were provided confidential information that a potential
target of D W A C and, uh, another acquisition company, uh, Ben Capital Acquisition Corps
was Trump Media and technology authorities said the defendants bought millions of dollars
of D w AAC securities on the open market before news of the Trump media business was made
public.
After the public announcement, the men dumped their securities for a significant profit
according to the court papers. So they were told information that should not have been
revealed to the public. So they dumped tons of money into Digital World. As soon as it's
announced, everybody starts buying, they start selling. They made, I think, uh, according
to this 22 million based on that insider information. So what happens to Trump media and technology?
What happens to the potential merger with Digital World that has to be completed by
September or that opportunity goes away? Well, according to these indictments, no wrongdoing
whatsoever is being accused on the part of Donald Trump or Trump media and technology,
okay? They are not accused of any of this wrongdoing as of right now with regard to
these three men that were arrested.
However, the indictment said that between June, 2021 and November, 2021, the men purchased
securities including warrants of their own and shared the secrets with their friends
and employees who also bought tens of thousands of units of securities ahead of the merger.
OU announcement with Trump Media and Technology Group, typically a special purpose acquisition
company or SPAC is formed with the intent to merge with a private company before the
private company becomes publicly traded. In early 2021, representatives of Trump media,
including Trump, began communicating with principles of Ben Vanessa Re about potentially
merging to take Trump Media public. The indictment said between March and June, 2021, the Trump
media and Benezra entered into non-binding letters of intent to merge. One of the men
was given a seat as one of the men that was arrested was given a seat on Digital World
Acquisition Co, uh, core's board of directors, and had access to confidential information.
It said he then shared that information with, of course, his co-conspirators. So that's
what's happening. And because he was a part of Digital World, not just an outside investor,
he was giving a given a seat on the board when this happened. This may mean that the
entire merger deal could be dead. Um, oh, and by the way, the, I I had stated it wrong,
like the, the SPAC can communicate with the company, but they cannot reveal any of that
information publicly to any potential investors, right? You gotta have your investors, then
you start talking, then it can be made public once it's, you know, finalized. Uh, but either
way, this to me seems to spell doom for Trump Media and Technology, and of course, by extension
truth social, uh, and that is because this is just the first of it. The investigation
has not concluded.
These are just the first three men to go down. And if they do not complete the deal by September,
as I said, uh, which is the 12 month extension, it's supposed to be last September, if it
doesn't get done by September, they will either have to vote to extend it again or the merger
is dead. Digital World acquisition, disbands. And the investors get their original money
back and Donald Trump loses potentially 300 million that he would've made off of the deal.
And let's not forget that. Reports earlier this year already suggested that, uh, truth
Social only had operating revenue through April. So they're basically running on fumes
at this point, trying to stay afloat. There's other things that, uh,
Trump's media and technology group is being investigated for still, including other investments
that they did not reveal to Digital World. It is a financial mess, both of these companies,
but these indictments are only gonna be the first. And if you ask me, I think Trump's
whole company is about to go down.