- Former President Donald Trump’s media company is aiming to raise up to $1 billion, Reuters reported late Wednesday.
- Shares of Digital World Acquisition Corp., which plans to merge with the media outfit, jumped 29% on Thursday.
- Trump Media & Technology Group seeks to sell shares to hedge funds and family offices, the report said.
Shares of Digital World Acquisition Corp., the company that plans to merge with former US President Donald Trump’s media outfit, soared Thursday as the Trump entity seeks to raise up to $1 billion, according to a Reuters report.
Trump Media & Technology Group is aiming to sell shares to hedge funds and family offices in a so-called private investment in public equity, Reuters reported late Wednesday. Trump Media, which is centered on Trump’s plan to launch a social media platform, is already in line to receive $293 million if its deal to list in New York through Digital World is completed.
The new fundraising plan targets a valuation of close to $3 billion, up from $875 million when it landed its October deal with Digital World. The sources told Reuters the amount reflects the rally in Digital World’s shares after Trump supporters and day traders bought the stock.
DWAC stock climbed as much as 29% to $57.38 during premarket trade in a busy early session as more than 1.3 million shares were exchanged. Shares had been valued at $10 each in the planned transaction with Trump Media, then hit a high of $175 each on October 22. They have since pulled back, closing Tuesday’s session at $44.35.
Trump’s media company has yet to roll out the social media app that it’s developing, the report said. The company in October said it would have a beta launch in November of its Truth Social app to invited guests. A nationwide introduction of the app was set for the first quarter of 2022.
“I created TRUTH Social and TMTG to stand up to the tyranny of Big Tech,” Trump said in an October press statement.