Elon Musk Restoring Trump's Twitter Account Sends SPAC Stock Down 3%

Special purpose acquisition company Digital World Acquisition Corp. DWAC shares were sliding over 3% in premarket trading on Monday.

What Happened: The downside can be traced back to investor concerns about the fate of Truth Social, a platform owned by Trump Media & Technology Group, or TMTG, with which Digital World has negotiated a merger deal.

Last week, Twitter CEO Elon Musk ran a poll to decide whether former U.S. President Donald Trump should be reinstated on the platform. The poll results have favored a Trump return.

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The former president was permanently suspended from Twitter in January 2020 following the Capitol Hill riots. Trump, then, announced his own platform — Truth Social — and launched it in March 2022.

Trump has ruled out his return to Twitter. Investors, however, are likely to be concerned that if the ex-president has a change of heart and embraces Twitter, the fate of Truth Social would hang in limbo and, in turn, that of Digital World.

Price Action: In premarket trading on Monday, Digital World shares were down 3.09% at $20.72, according to Benzinga Pro data.