Digital World Acquisition (DWAC) has approved the merger with Trump Media & Technology Group (TMTG), a company responsible for Donald Trump’s Truth Social platform. The combined company will soon trade under the ticker DJT, possibly as early as this week. The transaction price is $10 per share and TMTG is valued at about $1.1 billion at an enterprise value.
This merger has gained significant attention due to high-profile legal issues, intense trading activity, and Trump’s recent win in the Republican primary. Many view this stock as a bet on Trump winning the US presidency in November 2024. Despite the challenges of de-SPACs, DWAC has shown remarkable performance, rallying 111% year-to-date and closing at $36.94 on Friday, well above the offer price pre-merger. This makes it one of the few SPAC stocks to trade substantially higher post-merger.
