About Trump’s Social-Media Network Called Truth Social

From a Wall Street Journal story by Liz Hoffman headlined “DWAC, the Trump Social-Media SPAC, Surges”

What is DWAC?

Digital World Acquisition Corp. is a special-purpose acquisition company, or SPAC. It is essentially a pot of money raised from investors with the intention of finding a private company to buy. In this case, DWAC completed its initial public offering in September.

Hundreds of SPACs have been launched in the past two years, tapping into two market trends: investor enthusiasm to buy anything, and a flood of private startups looking to hit the public markets.

Why is DWAC going crazy?

This SPAC was up sharply from its listing price earlier Friday. The stock is surging in part because it is linked to one of the major figures on social media, former President Donald Trump, and this seems to have spurred a wave of individual-investor interest. The firm is also promoting itself as having a large market opportunity in presenting an alternative to what it views as the liberal-minded media establishment.

How is Donald Trump involved?

Unclear. He is listed as chairman of Trump Media & Technology Group, the newly formed company that is merging with DWAC and that has plans to launch a conservative-leaning social network called Truth Social….

What is Truth Social?

The Twitter -like platform—users can post “truths” and “re-truths”—is one leg of a planned media empire that would compete with the likes of Netflix and CNN, according to a company presentation this week. The presentation doesn’t make it clear when the planned platform would go live.

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