Donald Trump’s new social media company says it has reached agreements with investors to raise $1 billion in advance of a scheduled stock market listing.
Mr Trump’s company said it received the $1 billion from “a diversified collection of institutional investors,” but did not name them.
According to reports, the social networking company is now worth about $4 billion.
Despite the turmoil surrounding his presidency, it appears to demonstrate the former US president’s capacity to gather substantial financial backing.
Early next year, the Trump Media & Technology Group plans to introduce Truth Social, a social media app.
Following the 6 January attack on the US Capitol in Washington, DC by his supporters, Mr Trump was barred from using major social media platforms for fear of inciting further violence.
The opportunity to invest in the former president’s new enterprise was passed up by several Wall Street firms. However, it has received support from hedge funds, family investment firms, and high-net-worth individuals.
Trump stated, “$1 billion sends a critical message to Big Tech that censorship and political prejudice must end.”
“As our balance sheet grows, Trump Media & Technology Group will be better able to fight back against Big Tech’s tyranny.”
Earlier this year, Mr. Trump announced intentions to establish Truth Social, claiming that it would allow people to talk “without discrimination based on political viewpoint.”
The alliance between Trump Media & Technology Group and Digital World Acquisition has already drawn criticism.
Senator Elizabeth Warren, a Democrat, urged the Securities and Exchange Commission last month to look into the planned merger for possible securities law violations.
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