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Why Trump’s Twitter Snub May Not Last Long

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MARTIN BACCARDAX: It is quite complicated and I'll try to boil it down as best I can. Truth Social, which is the, of course, the social media platform is attempting to do a merger with a company called Digital World Acquisition. When they come together, they will list onto the NASDAQ. And then, of course, they'll be able to raise more capital and as a result, drive growth for the platform. However, there are significant investigations into the details of the merger, most notably from the Securities and Exchange Commission, and therefore it's been delayed for a number of months now. In order for it to continue, shareholders have to approve an extension of that merger, which was expected to be completed in September of this year. They'll actually vote tomorrow, but getting the 65% threshold for that vote has been exceedingly difficult because there are lots of retail investors and they're scattered all over the country.

So the chances of getting to that 65% threshold are actually quite slim. And with the investigations looming, people are worried about the fact that the whole thing may have to be unwound as a result. And even beyond that, the former president is kind of bound by the terms of his agreement with Truth Social and Digital World, not to participate in the same way as he has in the past. On Twitter  (TWTR) - Get Free Report, there has to be a six hour delay on tweets that he puts on, at the, he must first put on a Truth Social before he can put them on Twitter. And that agreement lasts into June of next year. So he is doing the right thing in terms of not sort of accepting the reinstatement on Twitter just now, but that could change very quickly if this digital world deal were to collapse as a result of the failed shareholder vote, the lack of ability to extend the merger agreement, or indeed an intensification of the investigations, which again include the SEC.

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