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Donald Trump finds himself entangled in legal woes, yet a potential financial windfall may be on the horizon. After protracted delays, the Trump Media & Technology Group (TMTG) and blank check partner Digital World Acquisition Corp (NASDAQ:DWAC) are set to merge at last. The looming shareholder meeting on March 22, after numerous regulatory hurdles and partner-induced postponements, signifies a crucial moment for the completion of this long-overdue merger. Should the vote pass, DWAC stock will bow out, making way for the emergence of TMTG stock in its place.
This union promises a hefty pay day for Trump, who boasts approximately 79 million shares of TMTG. Given his mounting legal expenses, this cash influx stands as a welcome relief. However, the potential financial boon for Trump does little to illuminate a positive outlook for prospective investors eyeing the new TMTG stock.
Navigating the Rocky Road: DWAC Stock vs. TMTG Stock
As the merger decision looms large, DWAC stock continues its downward spiral, punctuated only by brief moments of upward momentum. This unpredictability in the stock’s trajectory, especially on the cusp of a pivotal merger vote, sends a clear message—market sentiment towards Trump’s involvement leaves much to be desired. Numerous experts, as highlighted by InvestorPlace, contend that DWAC stock’s fortunes do not hinge on Trump’s allure. Despite his early accomplishments in the political arena, recent struggles have plagued the stock. Forecasts suggest that even the pending merger is unlikely to reverse its course given Trump’s current political standing. An exclusive report from political strategist Simon Rosenberg indicates a lead for Democratic contender President Joe Biden over Trump in six new polls, derived from data supplied by FiveThirtyEight. The general election may be months away, yet Trump’s outlook appears dubious at best. In the event of his defeat, TMTG stock will lose its newfound buoyancy.
Legal Limbo: DWAC and TMTG Tangled in Litigation
Amidst the merger fervor, legal entanglements are swiftly descending upon DWAC and TMTG. Reports from The Washington Post shed light on mounting legal challenges, as several former Truth Social insiders launch a legal offensive aimed at undermining Trump’s hold on the company. Describing the scenario, the outlet reveals, “The litigation won’t stop Friday’s shareholder meeting, during which Digital World has said it will announce whether a majority of investors voted to approve the merger. But the hundreds of pages of legal filings in the four cases offer clues to answers for some long-running questions about the companies’ inner workings and expose details of the turmoil that has characterized efforts to create a pro-Trump internet empire.” This legal tumult may spur a delay in the shareholder vote at the impending meeting but is likely inflicting a downward pull on DWAC stock—an unwelcome development for investors on what should be an optimistic day. Regardless of tomorrow’s vote outcome, the stark link between DWAC stock and Trump underscores its unattractiveness as an investment, a legacy TMTG stock is poised to inherit.
On the publication date, Samuel O’Brient did not hold any positions in the mentioned securities. The expressed views are subject to InvestorPlace.com guidelines. O’Brient serves as a Reporter for InvestorPlace, focusing on financial markets, global economic trends, and public policy with a weekly column on pertinent political news for investors.
