The news fueled huge gains Digital World Acquisition Corp. on Thursday. Shares of the company ended the day up $35.54, or 357%, at $45.50. The stock closed at $10.17 on Wednesday.
Trading in the stock of Digital World Acquisition Corp. was halted briefly -- at least twice -- because of volatility after the share price rocketed on heavy trading volume. Digital World Acquisition Corp. was among the top 10 most popular names on Reddit’s WallStreetBets chatroom.
The entity will seek to “create a rival to the liberal media consortium” and to “fight back against the ‘Big Tech’ companies of Silicon Valley,” according to a press release circulating on Twitter.
Within hours of the announcement, the site was defaced and knocked offline, according to reports.
The company will be funded via the $293 million raised in Digital World’s IPO last month.
The company has an app available for pre-order in the Apple app store. The store say’s it’s “expected Feb. 21, 2022.”
Former President Donald Trump is listed as the chairman of the group in the release. Digital World's CEO is Patrick Orlando.
The release says a social media network will be beta-launched in November. A public rollout is expected in the first quarter of 2022, according to the release.
David Drapkin writes on BoardroomAlpha, "We've seen plenty of pre-revenue companies strike SPAC deals (see flying taxis and robots), but this might be the first instance of, at least what appears to be on paper, a brand new company with little to no operations."
The twice-impeached former president has been barred from social media platforms in the wake of his lies about the 2020 election, his false allegations of voter fraud and his incitement of a mob of followers to attack the U.S. Capitol on Jan. 6 in an attempt to subvert the constitutional certification of President Joe Biden's election.
Dozens of lawsuits filed by the former president's campaign were summarily dismissed in state and federal courts.
A recount in Arizona's Maricopa County, organized by Republicans, found an even larger margin of victory for Biden in the state.