It should have been a huge day for Digital World Acquisition Corp (NASDAQ:DWAC), which is now poised to merge with Trump Media and Technology Group. But shareholders didn’t seem to take the good news well at all and sent shares of the special purpose acquisition company plummeting nearly 8% in Friday morning’s trading. A subsequent rally kicked in within a half hour, however, and now shares are down around 3% going into the afternoon.
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With this vote, shareholders in Digital World agreed to join up with Trump Media, a move that sees Trump himself net a $3 billion windfall. That’s particularly useful given his current circumstances. However, shareholders didn’t seem particularly interested in sticking around for the aftermath of said agreement and bugged out in large numbers. The newly combined operation will eventually trade under the ticker symbol DJT, though it’s unclear when exactly that transition will take place. Some reports put it at as early as next week.
But Will It Help?
It’s clear that a “$3 billion windfall” would be welcome for Trump, particularly at a time when virtually every legal machine that can be mustered is rolling against him. He also has a campaign to run ahead of November. But the windfall may not be especially helpful on that front, as it may not be as immediate as would be preferred.
Reports suggest that it would take significant time for Trump to cash out here, as a “lock-up period” of six months or more might be involved. There are ways around that, certainly—a board vote for special dispensation, for example—but without some form of intervention, the $3 billion Trump would stand to land may not actually be available.
What Is the Future Price Prediction for DWAC?
Turning to Wall Street, a look at Digital World’s last five trading days shows that it’s on the rise, though a bit volatile. It’s up 6.17% for the last five days, and though it trended down for the first two of those days, it rebounded fairly quickly. It’s down in today’s trading, but even here, it’s making something of a rally.
