Just a couple of weeks ago, it seemed like the last hurdle in the merger between Digital World Acquisition Corp (NASDAQ:DWAC)–a special purpose acquisition company–and Trump Media and Technology Group was about to fall. That combination could have made quite a powerhouse, giving former president and current candidate Donald Trump a stake in a substantial operation worth billions. However, trouble is afoot, and Digital World is down nearly 9% in the closing minutes of Thursday’s trading session.
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Reports note that the merger faces trouble from current shareholders, who allege that Trump Media tried to increase its total number of shares as a means to dilute the ownership stake that the founding partners of Trump Media would have had.
The two founding partners in question, Wes Moss and Andy Litinsky, both co-founders of United Atlantic Ventures, alleged that Trump Media tried to increase its outstanding shares roughly seven-fold, going from 120 million to one billion. That, in turn, would have cut United Atlantic Ventures’ share of the operation from 8.6% down to under 1%. Thus, United Atlantic Ventures is fighting back.
A Puzzle Wrapped in an Enigma Wrapped in a Hurricane
The history of this deal has been nothing short of chaotic. Just weeks ago, the story of Digital World Acquisition stock emerged, which featured unsettling points such as government informants, “…an elite anti-money-laundering squad,” and talk of insider trading. With this deal, an end to it all seemed to be afoot, and a massive influx of cash for Trump would have followed.
What Is the Forecast for DWAC Stock?
A look at the last five days in trading for DWAC stock shows a fairly steady decline, at least until today. When today hit, the decline sped up substantially. As a result, investors are down over 13% during this timeframe.
