Donald Trump’s return to Meta Platforms Inc’s META Facebook and Twitter could lead to collateral damage to his own Trump Media & Technology Group, which is set to go public via a merger with Digital World Acquisition Corp DWAC.
What Happened: Trump has told several people that he doesn’t want to renew a “social media exclusivity term” with his social media firm, reported RollingStone, citing two persons familiar with the matter.
“There’s not going to be a need for that,” said Trump, according to one source, reported RollingStone.
The contract reportedly requires him to first channel any and all social media communications to his Truth Social account for six hours before posting to other platforms.
Why It Matters: Trump’s exclusivity contract with Truth Social, which is owned by TMTG, is up for renewal in June just as Republican primaries are on the boil, noted RollingStone.
The contract will reportedly renew for a six-month period unless notice is given, however, if the exclusivity term expires the former president is still “required to post contemporaneously to Truth Social.
Trump said there’s an “expiration date” and he “didn’t want to make commitments,” a source told RollingStone.
Trump’s agreement with Truth Social gives him more leeway regarding his political messages, fundraising, and vote-garnering efforts, according to the report.
The return of Trump to Facebook and Twitter has been discussed by the former U.S. leader for weeks.
His campaign has reportedly asked Meta for a meeting to “discuss President Trump’s prompt reinstatement to the platform.”
Price Action: On Friday, Digital World shares closed 0.3% higher at $15.66, according to data from Benzinga Pro.
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