The social media company floated by Donald Trump has claimed that it has made arrangements with investors to raise $1B even as it plans to list on the stock market. The former president remains barred from Facebook and Twitter after he was accused of inciting the January 6 riots in the Capitol.
Donald Trump claimed that the $1B investment sends a significant message that there has to be an end to political discrimination and censorship.
He added that as his company, Trump Media and Technology Group’s balance sheet grows, it will be strong enough to fight off what he calls the tyranny unleashed by the Big Tech companies.
Donald Trump had planned to start his social media platform, Social Truth, this year. he claimed that his platform would permit conversation that would not discriminate against users of any political ideology.
The Trump media group has Digital World Acquisition as its partner. It is what Donald Trump calls a ‘blank check company or a special purpose acquisition.
Donald Trump Taking Funds From Unknown Entities To Finance His Social Media Company
Such companies are shell entities created solely to merge with a private entity before it goes public. But past companies have failed to deliver on ambitious financial claims and Trump’s media company seems headed the same way.
Donald Trump has refused to go into detail about the investors who he claimed were a diverse bunch of institutional financiers. Reports say that Donald Trump’s social media company has been valued at $4B. if correct, it will bolster the former president’s ability to get funds despite his controversial dealings.
It appears that shadowy funds, hedge funds, and family investors with ulterior motives are backing Donald Trump’s company. Financial investors say that he has in the past grossly exaggerated figures of his companies, such as his hotel in Washington DC.
Trump’s company has attracted intense scrutiny from regulators. The Securities and Exchange Commission is looking into the intended merger for violating securities laws.