A SPAC taking Donald Trump’s media company public spiked after hours Friday. Here’s why.
What Happened: Shares of Digital World Acquisition Corp (NASDAQ: DWAC) were trading higher Friday after market close.
The move comes after it was reported that Tesla Inc (NASDAQ: TSLA) CEO Elon Musk was walking away from a planned acquisition of social media platform Twitter Inc (NYSE: NYSE:TWTR).
Related Link: Elon Musk Wants Out Of Twitter Deal Due To Lack Of Information: $44B Buyout Off The Table
Musk has said previously that he would welcome back President Donald Trump to Twitter if he acquired the company.
“Permanent bans should be extremely rare and really reserved for … accounts that are bots or spam/scam accounts where there’s just no legitimacy to the account at all,” Musk said.
Trump had been permanently banned from Twitter.
“I do think that it was not correct to ban Donald Trump. I think that was a mistake because it alienated a large part of the country and did not ultimately result in Donald Trump not having a voice.”
Why It’s Important: Digital World is merging with Trump Media and Technology Group, a company that owns the Truth Social platform.
Truth Social has been a leading social media platform for many conservative voices after they were banned from other social media platforms, including Twitter.
Musk recently told Twitter employees that people should be allowed to say racist things on social media platforms like Twitter, but the company shouldn’t promote it.
Musk said Twitter users have the ability to filter out content they think is harmful. Twitter is more about entertainment and information and less about not offending people, Musk added.
With Musk not taking over Twitter, Truth Social will be one of the few social media platforms that allow Trump to post and could be a haven for those banned from other platforms.
Rumble, which is a free speech-centric video platform, could also see a boost. The company is merging with CF Acquisition Corp VI (NASDAQ: CFVI).
Price Action: Digital World Acquisition shares are up 18% to $29.02 in after-hours trading.
Twitter shares are down 7% to $34.47.
CF Acquisition Corp VI shares are up 2% to $10.20
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