Sep 8, 2022 - Economy

Trump's Truth Social falls short on shareholder vote

Illustration of a cell phone displaying the Truth Social app logo on a shattered screen.

Illustration: Aïda Amer/Axios

Former President Trump again didn't get enough votes, this time for the blank check company seeking to take his social media company public.

Driving the news: Digital World Acquisition Corp. on Thursday said it would adjourn its shareholder meeting until October 10, after failing to secure at least 65% shareholder approval for a one year extension to complete its merger with the parent company of Truth Social.

What to know: DWAC originally had until today to complete its merger, but federal investigations have caused delays.

  • DWAC originally set Tuesday as the deadline for securing a one-year extension, but then adjourned its special shareholder meeting until today (and then, even today, delayed by a few hours).
  • During a shareholder call that lasted just a couple of minutes, DWAC didn't explain how it plans to extend until mid-October, although the most likely mechanism would be having the sponsor pay over $2.8 million to exercise an existing option to extend by three months.
  • No word yet on if DWAC has secured an extension from the outside investors who committed $1 billion via a so-called PIPE financing.

Big picture: Truth Social says it currently has enough cash to maintain options through April 2023, and that it soon plans to begin generating revenue via advertising.

  • Trump recently accused federal securities regulators of trying to hurt DWAC, adding via Truth Social: "In any event, I don't need financing. I'm really rich. Private company anyone???"
  • He now has just over four million followers on Truth Social, which has yet to launch its Android app due to a content moderation dispute with Google.

Go deeper: Trump's Truth Social faces new challenge

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