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Highlights
- Donald Trump’s Truth Social app was downloaded some 170,000 times on Apple (AAPL) app store after its launch on Sunday evening.
- Trump Media & Technology Group (TMTG), which launched the app, is run by former US president Trump.
- TMTG is not listed on any exchange yet but talks with the blank-check company DWAC is underway for stock listing in a US$1.25-billion deal.
Truth Social app, launched by ex-president Donald Trump-led Trump Media & Technology Group (TMTG), was downloaded around 170,000 times since its launch on the Apple Inc (AAPL) store app on Sunday evening.
Although Trump’s clash with Facebook is well-known, can his new Truth Social app now compensate his earlier Facebook ban due to provocative statements.
The TMTG is reportedly in talks with Miami, Florida-based blank-check company, Digital World Acquisition Corp. (NASDAQ:DWAC), for a stock listing through a merger.
The deal value is estimated at US$1.25 billion. The DWAC stock was up 742% in the last four months at the closing price of US$84.32 on February 18, 2022.
On Tuesday, the stock was up 5.05% to US$88.58 at 10:49 am ET.
Trump’s Truth Social app launch
According to Reuters, the app was downloaded 170,000 times on Apple (AAPL) app store after its launch on Sunday evening. It is one of the top downloads in less than two days of launch.
The large number of pre-orders show people's interest in the app. The signups were so high that applicants were put on a waiting list.
Truth Social is launched in response to Trump’s social media ban by firms like Twitter (TWTR) and Meta Platforms (FB) in 2021. So, it is seen as Trump’s reentry into the social media space.
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Capitol Hill riots
Donald Trump was accused of instigating the Capitol Hill riots on January 6, 2021. However, he was also embroiled in various other controversies during his second presidential campaign.
The former president runs the Trump Media & Technology Group (TMTG), which launched the app. The app saw tremendous interest from Trump's followers on launch.
DWAC announced the merger deal with TMTG in December last year. TMTG is not listed on any exchange yet, but talks with the blank-check company DWAC is underway for a stock listing in a US$1.25-billion deal.
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The Securities and Exchange Commission (SEC) and the US Financial Industry Regulatory Authority are currently examining the details.
Under this deal, TMTG is expected to receive US$293 million in cash held in a trust from DWAC, according to a press release on October 21, 2021.
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Source - Pixabay
Image Description: Trump’s Truth Social app tops downloads on Apple (AAPL) app store, DWAC stock jumped?)
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Linked stock performance
With the App’s rapid downloads, DWAC and other related stocks also saw gains. The multiscreen-as-a-service (MaaS) integrated enterprise software platform company Phunware, Inc. (PHUN) advanced 2.07% to US$3.24 at 11:39 am ET. This company built a phone app during Donald Trump's 2020 presidential re-election campaign.
In December, TMTG entered into an agreement with Rumble Inc. to build Truth Social's video delivery and streaming infrastructure.
Rumble Inc. is taking the SPAC route to go public with CF Acquisition Corp VI (CFVI) merger. The CFVI stock fell more than 6% to US$13.25 at 11:39 am ET.
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DWAC has a current market capitalization of US$3.39 billion. Its stock moved in the price range of US$175.00 to US$9.84 in the last 52 weeks.
Bottomline
The TMTG, which is positioning itself as a supporter of free speech, is under regulators' radar. However, its Truth Social app may find support among Trump fans.
