Former US President Donald Trump will launch TRUTH Social, a social media platform that he claims would “stand up to Big Tech” firms like Twitter and Facebook, which have restricted him from using their platforms.
After hundreds of Donald Trump fans rioted at the US Capitol on Jan. 6, Twitter, Facebook, and other social media firms blocked him from using their services.
That demonstration followed Trump’s erroneous claim in a speech that his November election defeat was due to widespread fraud, a claim that has been refuted by various courts and state election officials.
According to a news release released by both companies, TRUTH Social will be founded through a merging of the Trump Media and Technology Group and a special acquisition company (SPAC).
The startup foresees competing against Amazon.com’s AWS cloud service and Google Cloud in the future, according to a presentation deck on its website.
Through a merger with Digital World Acquisition Corp, a blank-check acquisition firm managed by veteran investment banker Patrick Orlando, Trump Media & Technology Group will be listed on Nasdaq.
According to the announcement, Trump Media & Technology Group will receive $293 million in cash held in trust by Digital World Acquisition Corp if no shareholders of the acquisition firm choose to redeem their shares.
According to his firm’s website and regulatory filings, Orlando, who previously worked at Deutsche Bank and BT Capital Markets, has formed at least four SPACs and wants to open two more.
However, none of the SPACs has yet to close a contract. According to regulatory records, a China-based SPAC led by Orlando failed to execute a merger with Giga Energy Inc last month, which would have valued the transportation solutions company at $7.3 billion, because it could not pay the funds required.
Shareholder redemptions limit the amount of cash available to Digital World Acquisition Corp to distribute to Trump Media & Technology Group at the deal’s close.
The firms stated in the statement that the merger will be completed if redemptions do not exceed an agreed-upon minimum cash requirement. The message didn’t say what the requirement is, but that information is usually included in a regulatory file, which should be released on Thursday.
According to the news announcement, the agreement values Trump Media & Technology Group at $875 million, including debt.
“We live in a world where the Taliban has a sizable Twitter presence, but your favorite American President has been silenced.” In a written statement attached with the publication, Trump stated, “This is unacceptable.”
“I’m really looking forward to sending out my first TRUTH on TRUTH Social. TMTG was formed with the goal of giving everyone a voice. “I’m looking forward to sharing my opinions on TRUTH Social and fighting Big Tech,” he stated.
“Big Tech has stifled conservative views for so long,” Donald Trump Jr., the former president’s son, said in an interview. “Tonight, my father signed a definitive merger deal to form the Trump Media and Technology Group and TRUTH Social, a platform for everyone to express their emotions,” he said.
According to the news release, the social network is the first of three stages in the company’s plans, with a beta launch next month and a full launch in the first quarter of 2022. The social network will be followed by a subscription video-on-demand service called TMTG+, which will include entertainment, news, and podcasts.
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