Palihapitiya Calls Trump SPAC 'Huge Vote Against Censorship'

Former President Donald Trump is bringing several planned media units public with a SPAC merger. The announcement and huge valuation given to the company were discussed on the All-In Podcast, featuring comments from a name well known in the SPAC community.

The SPAC Deal: Trump Media & Technology Group is merging with Digital World Acquisition DWAC. The deal valued the company at $875 million and up to $1.7 billion based on future earnouts.

Shares of DWAC saw huge trading interest and soared to over $100 on Friday.

“Donald Trump has done a SPAC,” co-host Jason Calacanis said. “It’s become a bit of a meme stock on WallStreetBets.”

Calacanis pointed to the fact that Trump Media & Technology has no technology, no team, no IP and no office. 

Drawing Interest, Taking On Media: The hosts of the All-In Podcast discussed why the strong reception to the SPAC was a good indicator of taking on traditional media.

“It’s an index on the right,” Chamath Palihapitiya said. “It’s an index on the alternative to Fox News.”

Palihapitiya argued the creation of the new Trump media company was a huge “f--- you to traditional mainstream media.”

The slide presentation lays out the companies that Trump is targeting, which wasn’t lost on the show hosts.

“Trump is proposing an alternative to all the traditional media and social networks that have basically banned him,” David Friedberg said.

The group argued that the support the SPAC has seen is not just supporting Trump or Republicans but also showing support for social media platforms not controlled by big technology companies.

“I actually think this is a huge vote against censorship,” Palihapitiya said.

Related Link: 7 Key Takeaways From The Donald Trump SPAC Deal 

Palihapitiya Says Company Should Do M&A: One of the big arguments from the hosts was what should be done now that the company has a large valuation over $10 billion and has shown proof of demand.

“They could raise billions of dollars,” Palihapitiya said.

The strong interest in the stock shows that the company has brand value of over $10 billion and could raise money fairly easy going forward, he said. 

Palihapitiya thinks it makes the most sense for Trump Media & Technology Group to acquire a broadcast outlet to launch as a Fox competitor and to acquire an existing social media platform.

One of the All-In hosts was less optimistic that the company will retain its value going forward.

“I don’t think they’ll ever get a product out,” Calacanis said.

What’s Next: The group also discussed the potential implications of Trump’s company having a large valuation and how it could affect the 2024 presidential election.

“Trump today in one day is worth more than 2x The New York Times,” Palihapitiya said. “He is firmly back in the game.”

Palihapitiya said people will be shocked at the closing enterprise value of the company when it de-SPACs.

“Do not underestimate the number of people in Wall Street that are on the right and will help these guys.”

Palihapitiya said that some may remain anonymous and support the new media company, helping to make the deSPAC process go smoothly and helping the company have access to capital.

“What’s beautiful about the public markets is you can support this guy anonymously.”

The hosts see the value of the new company supporting a thesis that Trump could decide not to run for president in 2024.

“That could be a win-win for the Republican Party,” David Sacks said, noting he would like to see younger leaders giving America a real choice. Sacks called the odds of Trump and President Joe Biden running in 2024 at 50% each.

Palihapitiya said he sees a zero chance that Biden or Trump is on the ballot for the 2024 presidential election.

Friedberg said Trump will likely focus on running his new company.

DWAC Price Action: DWAC shares were down 6.06% at $88.49 Monday afternoon. Shares of the SPAC are up over 80% since Wednesday, when the deal was announced.

Photo by Gage Skidmore via Wikimedia.