TMTG plans to launch a social media platform as well as a subscription video on-demand service
Donald Trump’s TMTG to go public via merger with Digital World Acquisition. (Credit: Gage Skidmore from Peoria, AZ, United States of America/Wikipedia.org)
Trump Media & Technology Group (TMTG) has agreed to merge with blank cheque company Digital World Acquisition (DWAC) in a deal that values the former US President Donald Trump’s company at up to $1.7bn.
Set to launch a new social media platform called Truth Social, TMTG will have an initial enterprise value of $875m as per the terms of the deal. The company will get a potential additional earnout of $825m in additional shares, based on the performance of the stock price after the completion of the merger.
The deal will enable TMTG to become a publicly listed company.
DWAC chairman/CEO Patrick Orlando said: “Digital World was formed to create public shareholder value and we believe that TMTG is one of the most promising business combination partners to fulfil that purpose.
“DWAC currently has $293 Million in trust, assuming minimal redemptions, which can fuel TMTG’s scale-up, including to provide world-class leading technology services to build strong and secure social networks and diverse media offerings.
“Given the total addressable market and President Trump’s large following, we believe the TMTG opportunity has the potential to create significant shareholder value.”
According to TMTG, Truth Social is expected to be launched shortly. It is currently available in the Apple App store for pre-order.
The new social network is planned to have a beta launch for invited guests next month.
TMTG expects to see a rollout of the social media platform across the US in Q1 2022.
TMTG chairman Donald Trump said: “I created Truth Social and TMTG to stand up to the tyranny of Big Tech.
“We live in a world where the Taliban has a huge presence on Twitter, yet your favourite American President has been silenced. This is unacceptable.
“I am excited to send out my first Truth on Truth Social very soon. TMTG was founded with a mission to give a voice to all. I’m excited to soon begin sharing my thoughts on Truth Social and to fight back against Big Tech.
“Everyone asks me why doesn’t someone stand up to Big Tech? Well, we will be soon!”
Apart from Truth Social, TMTG plans to launch a subscription video on-demand service called TMTG+. The service will bring viewers news, ‘non-woke’ entertainment programming, podcasts, and others.
The company has appointed Scott St. John as the leader of TMTG+ corporate operations. John is the executive producer of “America’s Got Talent” and “Deal or No Deal”, and is said to have produced more than 1,000 hours of network and cable TV.