Dec 6, 2021 - Politics & Policy

Regulators investigating Trump SPAC deal

Former President Donald Trump speaking during a rally in Des Moines, Iowa, in October.
Former President Donald Trump speaking during a rally in Des Moines, Iowa, in October. Photo: Scott Olson/Getty Images

Regulators are investigating the planned merger between Digital World Acquisition Corporation and former President Trump's social media business, according to a recent filing by the SPAC.

Driving the news: The Securities and Exchange Commission and the Financial Industry Regulatory Authority are looking into the trading of Digital World's shares, while the SEC is investigating communications and documents between Digital World and Trump Media Technology Group.

  • Digital World said it is complying with the investigations.
  • The investigations come after the New York Times reported that Digital World’s chair and CEO Patrick Orlando held talks with Trump before the SPAC filed for its IPO in May or priced it in September.

The big picture: Sen. Elizabeth Warren (D-Mass.) asked SEC chair Gary Gensler to investigate the proposed merger in a letter sent in November.

  • Depending on how the investigations pan out, they could have cascading effects on other active and future SPAC deals, Axios' Dan Primack reports.
  • Trump hopes to launch a digital media network called "Truth Social" through Trump Media Technology Group.

Go deeper: Trump social media group raises $1 billion from undisclosed investors

Go deeper