Nov 22, 2022 - Economy

Truth Social and Parler in limbo as Elon Musk forges ahead

Kanye West and a Parler logo

Photo: Chirs Delmas/AFP via Getty Images.

A key shareholder vote on Tuesday served as a lifeline for the financial future of Donald Trump's Twitter alternative, Truth Social, while the status of Ye's plans to acquire Parler remains cloudy.

Why it matters: Elon Musk's reinstatement of both Trump and Ye's accounts is creating major growth challenges for both Truth Social and Parler.

Driving the news: Shareholders in Digital World Acquisition Corp., the blank check company trying to take Truth Social public, approved a merger extension until next September, after several vote postponements.

  • This does not, however, guarantee that the deal will close, particularly as it remains the subject of multiple government investigations. It also doesn't provide any upfront cash to Truth Social, which previously said its financial runway only extends until next April.

Be smart: Musk's populist takeover of Twitter is likely to pull momentum from "free speech" Twitter alternatives.

  • After joining Parler a month ago, Ye has fewer than 60,000 followers on the platform.
  • Sources say that odds are growing longer that Ye's takeover of Parler will close by year-end, as originally anticipated, and the company didn't respond to a request for comment.
  • Donald Trump has a little over 5 million followers on Truth Social, but that pales in comparison to the 88 million followers he has on Twitter.

Of note, it's unclear what impact Trump's 2024 presidential run would have on Truth Social.

  • The former president is "generally obligated" to post on Truth Social for a limited time period before posting on other social media sites, according to a regulatory filing, although there is a carveout for "political messaging" that would allow him to post on his personal accounts at any time.
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