Trump Media's Funding Partner To Return $1B To Investors Amid Mounting Hurdles

The financial associate of Trump Media & Technology Group, Digital World Acquisition Corp. DWAC, announced it will return $533 million of the $1 billion raised for the venture, following the cancellation of $467 million in funding commitments.

CBS News reported that the termination notices accounted for $467 million of the funding. DWAC CEO Eric Swider described the decision as a “positive development”, emphasizing the move to establish a “sustainable business model” for the media group held by former President Donald Trump.

This financial setback could potentially derail the anticipated merger between DWAC and the Trump media group, which operates Truth Social, a conservative-leaning social media platform. The merger announcement in 2021 had previously triggered an 800% surge in DWAC’s share value, likening it to meme stocks.

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The merger has faced several roadblocks, including regulatory scrutiny. Despite these challenges, Swider maintains that the cancellation of funding commitments is a positive step towards finalizing the business combination.

Without the previously agreed funding, the financial future of Trump Media & Technology Group post-merger remains uncertain. The original plan was for DWAC to furnish TMTG with a substantial financial pool upon completion of the merger. This merger has been repeatedly postponed, with DWAC shareholders recently approving a one-year extension to the merger deadline.

Swider stated that Trump’s media group has a “reduced need for capital” and a “commitment to growing a sustainable business model.”

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