A merger involving Donald Trump‘s media startup has received more time to go public after investors granted executives an extension that could save the former president’s company $300 million.
Digital World Acquisition Corp. will have until September 2024 to complete its merger with Trump Media & Technology Group, the former president’s social media company, and list the combined firm on Nasdaq. This is the merger’s second yearlong extension.
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Over 65% of the venture’s shareholders signed off on the extension. If it had not been granted by Friday, Digital World and its deal would have effectively died. In that case, Digital World would have been required to return $300 million to shareholders, the amount that would be injected into the combined firm, according to multiple reports.
“Thank you for all of the outstanding support,” Digital World CEO Eric Swider posted on Truth Social after the vote was announced Tuesday. “Please understand my silence. We remain focused on the task at hand and are watching every word we say.”
Trump Media operates Truth Social, the former president’s preferred social media platform after he was banned from Twitter, now renamed X, following the Jan. 6 Capitol riot. Trump was reinstated last year but has only posted once, circulating a photo of his mug shot on Aug. 24.
Digital World and Trump Media’s plan to merge was unveiled in October 2021. The former settled charges with the Securities and Exchange Commission, which alleged that the company misled investors about its negotiations with Trump Media.
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The two groups have affirmed their commitment to merging, recently rolling out a series of changes to the combined firm’s structure. One of the changes includes cementing Trump’s control by giving him 55% of the voting power in the stock.
Now, Digital World must file amended regulatory filings before Oct. 9 — if it does not, Trump Media can walk away from the merger.
