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DIGITAL WORLD ACQUISITION CORPORATION : Trump's Special Purpose Acquisition Company (SPAC) Has Huge Upside
Seeking Alpha ^ | 12/09/2021 | The Asian Investor

Posted on 12/10/2021 9:47:56 PM PST by SeekAndFind

Summary

* Trump Media & Technology Group's paid subscription offer, TMTG+, offers massive upside.

* $1.0B PIPE deal shows strong demand for a rival social network.

* If Trump Media & Technology Group gets the same valuation as Twitter or Meta Platforms, based on sales, Digital World Acquisition Corp.'s market cap could rise by a factor of 3X.

Blank check company Digital World Acquisition Corp. (DWAC) is merging with Trump Media & Technology Group. The announcement initially created a frenzy for shares of Digital World Acquisition Corp. but shares have started to surge again. TRUTH Social could become a major Twitter (TWTR) rival and has massive market cap upside!

Bet on the rise of a Trump-focused social media network

Trump Media & Technology Group is set to roll-out a new social network, called TRUTH Social in FY 2022 that will allow followers to connect with the former president. The SPAC merger, announced in October, implies an enterprise value of $875M for Trump Media & Technology Group, but it could increase to $1.7B which is conditional on the issuance of new shares.

TRUTH Social has very good chances to become a social media hit, not only for the former president but also for investors that consider DWAC. This is because Donald Trump attracts a lot of attention, and attention is the ultimate currency in the social media world. He was banned from using his social media accounts in FY 2021, accounts that were followed by close to 150M people across multiple platforms. Trump’s social media accounts on Twitter, Meta Platforms (FB) and Instagram were followed by 89M, 35M and 24M people. These numbers matter because they allow an estimate for how many people could potentially create accounts on the former president’s new social media platform.

(Excerpt) Read more at seekingalpha.com ...


TOPICS: Business/Economy; Society
KEYWORDS: acquisition; digitalworldacquisit; dwac; spac; trump; truthsocial

1 posted on 12/10/2021 9:47:56 PM PST by SeekAndFind
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To: SeekAndFind



2 posted on 12/10/2021 9:48:56 PM PST by SeekAndFind
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To: SeekAndFind




CONSIDER THE RISKS

There are considerable risks involved regarding the launch of a new social media network, which is a complex undertaking that requires technical knowledge and execution skills. A lot is still uncertain and the full potential of TRUTH Social is hard to estimate. There is a risk that Trump’s social media network fails to take off and falls behind its projections for user growth and monetization. Also a risk: The SEC is investigating TMTG's SPAC deal which could result in a fine and impact the stock negatively.
3 posted on 12/10/2021 9:51:01 PM PST by SeekAndFind
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To: SeekAndFind

Trump can do the most good running a free speech media and technology company while DeSantis runs for President in 2024.


4 posted on 12/10/2021 9:54:54 PM PST by Arcadian Empire (The Baric-Daszak-Fauci spike protein, by itself, is deadly.)
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To: SeekAndFind

I’ve been buying very small amounts and averaging in. Being pro-Trump is not a reason to dive into this all at once.


5 posted on 12/10/2021 9:58:35 PM PST by ArcadeQuarters (Remember the 2020 backstabbers. No more RINOs ever!)
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To: Arcadian Empire

I’m inclined to agree. My hope is this media company has the staying power that will only happen if it is secured against spamming or other forms of Liberal online sabotage.
Time will tell. If this media company survives mostly uninterrupted for the first calendar year, I will be both surprised and delighted. Maybe this time, he has hired the right people to make it happen.


6 posted on 12/10/2021 10:22:01 PM PST by lee martell
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To: lee martell

Trump’s media and technology company needs to have people whose sole task is to figure out ways that the company could be sabotaged and how to prevent that from happening.


7 posted on 12/10/2021 10:50:38 PM PST by Arcadian Empire (The Baric-Daszak-Fauci spike protein, by itself, is deadly.)
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To: Arcadian Empire

Yes. This is not something that should be entrusted to or dependent on one single individual.
Remember how that tall guy, Brad Parscale was so helpful during the campaign, but after a few years, all the pressure seemed to weaken or distract him. Brad suddenly unraveled and needed to stop working for anybody for a good while.


8 posted on 12/10/2021 11:05:23 PM PST by lee martell
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To: lee martell

The one person in Trump’s orbit with the ability and knowledge to see this through is Peter Thiel.


9 posted on 12/11/2021 1:27:57 AM PST by WNYJackson (We are what we repeatedly do.)
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To: SeekAndFind
Another article from the same source dated Oct. 25, 2021: DWAC: If You Believe In The Trump Meme Then Buy The Warrants And Sell The Stock

According to article, it is better to buy shares of DWACW instead of DWAC, because DWACW shares (warrants) act like options to buy DWAC for $11.50 around October 2022. However, DWACW shares cost about 1/3 the price of DWAC. If you think the company will be successful on or after October 2022, then DWACW is a better buy.

Here is another good article from Oct. 24, 2021: A Boring Legal Look At Digital World Acquisition Corp. - What Investors Need To Know

10 posted on 12/11/2021 8:40:08 AM PST by UnwashedPeasant (The pandemic we suffer from is not COVID. It is Marxist Democrat Leftism.)
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To: SeekAndFind

It might be worth it to invest in this company.


11 posted on 12/11/2021 9:14:34 AM PST by TBP (Decent people cannot fathom the amoral cruelty of the Biden regime.)
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To: UnwashedPeasant
More info on DWACW (warrent shares) from Reddit: DWACW Warrants explained. What, How, When, Why/Why Not
"And most importantly! When you exercise a warrant it is taxed as ordinary income. This means that if they get called and you're sitting there looking pretty with 10k of these things, you'll be immediately cutting a check to Uncle Brandon for the highest possible tax bracket you can reach. Taxation of Stock Warrants (zacks.com)The amount per share you will owe tax on is the price of the stock P minus the Cost Basis C and the Strike Price SP - (C + S); and you will need to pay the strike from out of pocket."
That extra tax offsets some of the discount you get buying DWACW instead of DWAC.
12 posted on 12/11/2021 10:14:57 AM PST by UnwashedPeasant (The pandemic we suffer from is not COVID. It is Marxist Democrat Leftism.)
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.


13 posted on 12/12/2021 5:46:15 AM PST by MomwithHope (Forever grateful to all our patriots, past, present and future.)
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