This is wild!
I don’t think Donald Trump knows how to run a social media company!
News late Wednesday that the former president’s nascent media enterprise, Trump Media & Technology Group, is planning to go public via a special purpose acquisition company has sent retail investors into a frenzy, even with few details released. The stock gain drove the implied value of the new venture to more than $8.2 billion.
Based on figures from press releases and filings to the Securities and Exchange Commission, it appears Trump will own more than 50% of the combined company. At its current value, that would make him the richest he’s ever been, up from his estimated net worth now of $2.5 billion, according to the Bloomberg Billionaires Index.
Now comes the arrival of the social-media outlet that Trump, the leader in polls for the GOP presidential nomination in 2024, has been teasing at for some time. There are many reasons to be skeptical of the valuation. It will be months before the new venture publicly releases its first product, a social-media platform called Truth Social. And there are already technical issues. On Thursday, the Truth Social page was hacked to make it appear that Trump shared a photo of a defecating pig.
It’s also unclear how Trump plans to build a social-media platform on the scale of Twitter over the next few months, let alone a streaming service, which is the next phase of Trump Media’s plans, according to the press release announcing the company. That statement was light on numbers even by SPAC standards.
“We have no financials. We have no business plan. We don’t know how they got to the valuation. We have no information,” said Kristi Marvin, chief executive of research firm SPAC Insider. “That’s the fundamental problem.”
Representatives for Trump and Trump Media didn’t respond to requests for comment.
The business has ambitious plans that also include a potential “tech stack” to compete with Amazon.com Inc.’s AWS and Google’s Cloud, among others, according to a presentation on Trump Media’s website. As of now, Digital World’s board is light on members with media experience. Its chief executive officer, Patrick Orlando, is a former Deutsche Bank AG derivatives trader who co-founded a sugar-trading company and started a banking firm, Benessere Capital, before more recently embracing SPACs.
So far, retail investors have little concern. Shares of Digital World Acquisition Corp., the shell company merging with Trump’s new venture to take it public, closed Friday at $94.20 — up from $9.96 before the deal was announced Wednesday. It’s also an increase of more than 800% from a $10 offering price that’s typically used in a SPAC merger agreement.
The press release said the new company would have an initial enterprise value of $875 million. Assuming that calculation used a $10 a share offering price and the $293 million Digital World has in trust, the SPAC’s owners will get about 42% of the combined company after accounting for shares the sponsor receives if a deal gets done.
That leaves 58% for Trump and any partners he has in Trump Media. That stake is worth nearly $4.8 billion, based on Digital World’s last price. The whole enterprise is being valued by the market at about $8.2 billion, compared with Twitter Inc.’s almost $50 billion equity valuation.
With the new media company’s valuation dwarfing the $875 million enterprise value agreed to by Trump, he may have been able to negotiate a sweeter deal. Terms of the agreement will need to be more fully disclosed and could still change before an agreement gets voted on by shareholders, an event that is probably months away.
For those who don’t know, a SPAC usually allows people to buy shares before they know what the venture is. It’s actually a really ridiculous concept, like a mystery box on a game show.
When the initial investors in this SPAC found out it was Trump on the other end of it, a bunch of them dumped their shares. Then they increased in value by more than 12X.
So, it’s funny.
But seriously – so far, Trump promoted a failed blog. Then he sort of seemed to endorse Twitter-clone GETTR, which was an absolute disaster, filled with porno spam.
We have pretty solid evidence that Trump will not allow anyone to criticize Jews on any site he is on. Gab CEO Andrew Torba said that he talked to Trump’s people after Trump was banned from Twitter, and they said that Torba would have to ban everyone who criticizes Jews or Israel.
Then, the same day Trump made an official deal to have an official Rumble account, that company released an updated terms of service banning criticism of the Jews.
An outright ban of criticism of the Jews effectively means that every sort of interesting conversation is banned.
Just as one obvious example: Jews claim that any criticism of vaccines is anti-Semitism, because Jews made the vaccines.
So, if you can’t talk about Jews, you can’t really talk about anything. Of course, banning all criticism of Jews is bad enough. And just stupid. But apparently, even after Jared Kushner destroyed his presidency and caused him to have the 2020 election stolen from him, Trump still lets Kushner run his entire life.
Whatever. I don’t care.
Trump is a vaxer, and that is the only thing that matters to me anymore. I literally don’t care about anything else, as I do not think any other issue is relevant as long as the vax issue exists.
Given that Trump is literally a Pfizer shill and a fanatical vax maniac, he will also probably outright ban any criticism of the pandemic hoax and these deadly fake vaccines.
I’ve tried to work through why he is promoting these vaccines so hard, given that basically 100% of his supporters are against them, and I’ve come to the conclusion that he’s most likely getting paid by Pfizer.
You guys might have seen this “Brought to you by Pfizer” video – if not, it’s only 53 seconds.
Basically, I think anything Trump does might as well say “brought to you by Pfizer.”
Given the blanket ban on criticism of the Jews, there will likely be more aggressive censorship on “Truth Social” than there is on Twitter. Trump of course thinks it’s just all about him, and the people around Trump do not seem to grasp the fact that censorship simply is not viable for an alternative social media platform. The only reason anyone is going to leave a mainstream social media platform is that they are getting censored or the content they like is getting censored, and if you ban criticism of the Jews (and follow the ADL rules as to what amounts to “criticism of Jews,” which at this point includes Tucker Carlson), you end up with Mike Cernovich and Paul Joseph Watson, who are still at this point allowed on Twitter.
I don’t think Trump understands the censorship issue at all, or he would have done something when I was censored in 2017. It was obvious then that his own days were numbered. But he seems to think that censorship started with him, and the only thing people want to talk about is the election fraud. In reality, every right-winger is more concerned about the vax than the election.
When you add to that the fact that Trump has proved consistently that he does not understand how to run a business, and has had all of these problems with getting any type of media presence since getting banned, I do not think this is going to work at all.
Was just able to setup an account using the handle @donaldtrump on 'Truth Social,' former President Donald Trump's new social media website.
Although the site is not officially open, a URL was discovered allowing users to sign up anyway. pic.twitter.com/MRMQzjNhma
— Mikael Thalen (@MikaelThalen) October 21, 2021
BREAKING – Trump’s Truth Social is ALREADY in legal trouble for ripping off the open-source platform Mastodon and violating a license. They either need to rebuild the Truth Social codebase, or they’ll get pretty much destroyed in court. #ETTD
— Tristan Snell (@TristanSnell) October 22, 2021
Apparently, it is literally a meme stock. I don’t give financial advice. It’s possible that it will go up from where it is now, I guess. But it will not maintain value. As soon as Truth Social comes out and it is totally broken and filled with porn and everyone is getting banned by some brutal ADL-appointed team of Jews that Kushner brings in, the value is going to collapse immediately.
The sad part is, virtually anyone else on earth could create a real competitor to Twitter/Facebook with an 8 billion dollar SPAC.
Note: I just want to remind everyone that I’m as sad as you are about Donald Trump turning into what he’s turned into. He is Pet Semetary Trump. I don’t even like to write about it, really – but this is news. I lost everything for Trump. The censorship I experienced was all directly related to the fact that all those think tank research papers – including one by the ADL – said that I was responsible for getting Trump elected. He’s turned around and tried to vax me with a deadly satanic gene therapy.