Thursday’s stock price of Digital World Acquisition Corp. -- the special purpose acquisition company (SPAC) that intends to merge with former President Trump new company Trump Media & Technology Group -- witnessed massive gains following the news of the potential deal, soaring 350% at the close of business on Thursday to $45.50 a share.
Wednesday night, Trump’s new company issued a press release that former president would be starting a new social-media platform Truth Social, as well as an unnamed subscription video-on-demand platform.
Few financial details about the media platforms were revealed in the announcement.
Trump had been banned by social-media platform heavyweights Twitter and Facebook, following the January 6 insurrection attempt on the U.S. Capitol.
Digital World was among the most popular names on Reddit’s WallStreetBets chatroom Thursday, according to reports -- an online area that pushed up the price of stocks such as GameStop and AMC Entertainment earlier this year.
The announcement said Trump Media & Technology Group had “an initial enterprise value of $875 million, with a potential additional earnout of $825 million in additional shares.” This would result in a valuation of up to $1.7 billion.
Digital World had an initial public stock offering last month resulting in $293 million in cash, according to the release. Digital World Acquisition was incorporated in late 2020, just weeks after Trump lost a reelection bid against Joe Biden.