INVESTORS trading yesterday saw a 100 per cent increase in the share price of the recently launched social network, Truth Social, owned by former US President Donald Trump.
Digital World Acquisition (DWA), the private firm floating the stocks to the public in premarket trading today, recorded a 100 per cent increase in trading at $71.40.
The unveiling of Truth Social on Thursday also saw frenzied purchases by investors quadruple stock price by more than 350 per cent before closing at $35.54 on Thursday.
Trump’s access to several social media platforms was restricted after the January 6 assault on the U.S. Capitol. The former President has been searching for a new online social network platform after losing nearly 89 million followers on Twitter.
Trump Media & Technology Group, in a press release, said Truth Social “was founded with a mission to give a voice to all,”.
The DWA is a shell company that raises money and trades on a stock exchange. It has merged with a private firm, the Trump Media & Technology Group, to float its shares and stocks to the public within a given timeframe.
The DWA funding in the merger is worth $290 million as Trump Media & Technology Group could use the money held by the DWA to fund the growth of the social network.
A total assessment of the deal between DWA and Trump Media & Technology Group is estimated to be worth $875 million, including debt.
Truth Social network will initially be opened for invited users in November and is expected to be available across the US in early 2022.
It is expected that the social network will create a subscription video-on-demand service for users.
Several social media websites catering to conservatives have emerged in recent years, which include Parler, Gab and Gettr, a free-speech-focused platform launched by former Trump adviser Jason Miller early this year.
