Rep. Devin Nunes (R-CA)
Brendan Smyalovsky | AFP | Getty Images
The share price of the blanc company, which is partnering with former President Donald Trump’s social media firm, fell on Monday in late-day trading as news of the app’s launch delay circulated on Twitter.
Digital World Acquisition Corp. It opened trading on Monday at $87.02 per share and jumped to $97.15 on Monday. But the share price began to fall around 3:30 pm ET and dropped to $80.45 a share.
DWAC closed the trading day at $83.88 per share.
While the plunge in stocks was fueled by rumors of a delay in the launch of Truth Social on Monday, a delay was announced last month for the launch of Trump’s version of Twitter.
In early January, Truth Social indicated on the Apple App Store that it would launch on February 21st.
But Devin Nunez, newly appointed CEO of Trump Media and Technology Group, during a Jan. 23 appearance on Fox Business said the app would be released by March 31st.
Nunez, a California Republican who served in the House until January, cited the need to complete the current beta test as the reason for the delay.
DWAC later filed a transcript of Nunes’ interview with the Securities and Exchange Commission, acknowledging the importance of the delay to their business.
DWAC stands for SPAC, or the so-called Special Purpose Acquisition Company. SPACs raise money in the stock markets and then set out to identify other firms to merge, creating a publicly traded organization of combined firms.
Trump announced in October that his new social network would merge with DWAC in a deal that would value the Trump Media and Technology Group at $1.7 billion.
Trump said Truth Social will compete with social media giants Twitter and Facebook, both of which banned him last year for publishing statements that sparked a bloody riot at the Capitol on January 6, when supporters of the former president broke into the building and disrupted lawmakers. . confirmation of Joe Biden’s victory in the Electoral College.
“We live in a world where the Taliban are heavily represented on Twitter and your beloved American President has been silenced,” Trump said when announcing the merger.