Stock For Trump-Linked Digital World, Truth Social's Ad Seller, Rises After Indictment

Digital World Acquisition Corporation-- a blank-check company formed with the intent to acquire a media company controlled by Donald Trump -- has seen its stock rise after the news of the former president's indictment for issues related to campaigns and business finance.

Stock of Digital World Acquisition Corporation (DWAC) -- otherwise known as a special purpose acquisition company (SPAC) -- was up 5% in mid-day Friday trading to $13.92. Digital World’s stock dropped 80% in value over the past 12 months, and 12% year-to-date.

In October 2021, DWAC announced plans to take Trump Media and Technology Group (TMTG) public after a merger. The company owns social media site Truth Social.

Rumble, a video advertising platform doing business with Trump’s Truth Social app, was up 7% at the close on Friday. TMTG struck an agreement with Rumble in August 2022, to “support advertisements via Rumble Ads”.

A New York Times report in January of this year cited advertising on Truth Social as being filled with advertising for “miracle cures, scams, and fake merchandise.”

The report says Rumble’s ad revenues are between $15 million and $25 million annually, according to estimates from Similarweb, a web analytics company.

Truth Social was launched after the January 6 insurrection. Trump was banned from social media platforms -- including Twitter and Facebook -- due to the “risk of further incitement of violence” connected to the event. He has since been reinstated.

Recently, DWAC fired its chief executive Patrick Orlando. He was replaced by board member Eric Swider as interim chief executive officer.

Last November, company shareholders approved a one-year deadline extension to take Trump’s social media platform public. This comes amid an investigation by the Securities and Exchange Commission into DWAC's dealings.

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