Investors fleeing the company planning to merge with Truth Social, take it public

There is more bad news for the company you’re supposed to merge with Donald Trump“Social Truth” to Spread: Investors are starting to jump ship.

Digital World Acquisition Corp – the special purpose acquisition company (SPAC) that Truth Social needs to bring to the public – was revealed in Securities and Exchange Commission filing On Friday, investors retracted commitments of $139 million from the $1 billion previously announced by the company.

More will likely come. Investors, who agreed to put up the funds nearly a year ago, can now give up their commitments because Digital World did not meet its September 20 deadline To integrate with the Truth Social.

DWAC is Extension of the time frame of the deal by three months After shareholders refused to accept their offer for a 12-month extension. But investors can still hold back.

It’s just the latest issue for Digital World and the Truth Social.

A major seller complained last month about it The truth is, social bills go unpaid. A major web hosting operator said social truth They owe about $1.6 million in contractually obligated payments, a claim indicating that funding for the operation is in “A big mess” Fox Business News mentioned.

In another setback, Truth Social’s Trademark application denied last month because its name was very similar to other operations.

Truth Social wasn’t the overpowering force some investors had hoped for. The social media platform is largely a forum for Trump, who frequently posts self-promotional messages and retweets articles from the right-wing media praising him every day.

Mostly answered comments include QAnon conspiracies, pro-Trump pro- and anti-Trump amplificationsJoe Biden memes, and embarrassing comments like: “Ode to the greatest president ever.”

Comments lack the back and forth of social media platforms like Twitter that make it more conversational. Most of the negative comments on Truth Social are buried or disappear from the site, which organizers have promised will be censorship-free.

Trump launched the Truth Social after he was removed from Twitter in the wake of the January 6, 2021 riots at the US Capitol. Trump has been using the platform as he has with Twitter — to attack enemies, complain that he has been victimized and falsely insist that he win the 2020 presidential election.

Last month, the digital world warned in SEC . deposit it’s a Trump’s waning popularity could hurt business. The filing noted that the success of Truth Social hinges on the “reputation and popularity” of the investigation-battered Trump, who heads the Trump Media and Technology Group, which owns and operates the social media platform.

“To be successful, TMTG will need millions of these people to register and regularly use the TMTG platform,” the registry warned. If President Trump becomes less popular Or that there are further controversies that harm its credibility or people’s desire to use a platform linked to it, “the planned merger with Digital World may be adversely affected,” she warned.