Donald Trump’s prospective media company has raised an additional $1 billion from an undisclosed group of investors, it was announced on Saturday.
Trump Media and Technology Group (TMTG) is attempting to go public via an SPAC (special purpose acquisition company) called Digital World Acquisition. The $1 billion investment is part of a so-called PIPE (private investment in public equity) investment. It is highly unusual for a company to not disclose investors for a transaction of this size.
The prospective company does not yet have a CEO. Trump is listed as its chairman. A major part of the company will be its own social media network unironically called “Truth.”
According to the New York Times, Digital World Acquisition Corp. was incorporated in Miami, Florida, in December 2020 — a month after Trump lost the election. The company, owned by CEO Patrick F. Orlando, filed for initial public offering at some point last spring, and in September raised approximately $282 million, according to an SEC filing, from that IPO. An additional $11 million was raised from selling to private investors. The company is backed by several big hedge funds that own significant percentages.
Trump said in a statement on Saturday: “$1 billion sends an important message to Big Tech that censorship and political discrimination must end. America is ready for TRUTH Social, a platform that will not discriminate on the basis of political ideology. As our balance sheet expands, TMTG will be in a stronger position to fight back against the tyranny of Big Tech.”
Orlando added: “Our focus on delivering public shareholder value drives our decision-making and by accepting these commitments for a strategic infusion of growth capital, we believe the combined company can grow on an incredibly strong foundation. The liquidity that will be provided to the combined company balance sheet, in excess of the up to $293 million (less expenses) that DWAC may provide, should fortify the strategic positioning of TMTG. I am confident that TMTG can effectively deploy this capital to accelerate and strengthen the execution of its business, including by continuing to attract top talent, hire top technology providers, and roll out significant advertising and business development campaigns.”
Shortly after Trump first announced his plans in October, the New York Times revealed that one of the biggest investors in the Digital World SPAC was Saba Capital, a $3.5 billion hedge fund. Its founder and manager, Boaz Weinstein, told the paper that once his company was made aware that the SPAC it had invested in was funding Trump Media & Technology Group, it sold much of its stake, netting a small profit.