Shares of a SPAC linked to taking former President Donald Trump’s media and social media company public jumped Tuesday. Here’s what could be causing the sudden spike.
What Happened: Social media app Truth Social is part of Trump Media & Technology Group, a company going public via SPAC merger with Digital World Acquisition Corp DWAC.
Fox News, a unit of Fox Corp FOXFOXA, officially joined Truth Social Tuesday with a verified news feed on the social media platform. The news was reported by Axios reporter Dan Primack.
“Truth Social today added formal/verified Fox News feed to its app. Notable, because most new brands — plus NFL, NASA, etc. — only have ‘bot feeds’ on the site, even though Truth Social promotes them,” Primack tweeted.
Related Link: 7 Details We Learned From The Donald Trump SPAC Deal
Why It’s Important: Shares of Digital World Acquisition traded down over the past two weeks thanks to news that Tesla Inc TSLA CEO Elon Musk took a stake in Twitter. The news of the stake led to some speculation that there could be a push to welcome back banned accounts to Twitter, including Trump.
It was recently reported that downloads of Truth Social, which is available only on Apple Inc AAPL iOS devices, had dropped by 93% since the first week of app availability. App downloads were around 60,000 per week.
Trump has not posted on Truth Social for months. The inclusion of a popular news site that often appeals to the demographic Truth Social is targeting could be a positive to add and retain users on the social media platform.
DWAC Price Action: Digital World Acquisition shares were up 5.90% to $48.13 on Tuesday at market close.
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