Donald Trump’s Truth Social app might be on its last legs. Trump had plans to merge Truth into a “special purpose acquisition company” called Digital World Acquisition Corp. The idea was to raise capital for the new venture before the two merged. Truth’s whole business plan revolves around this.
When Elon Musk announced that he had a deal in place to acquire Twitter, investors immediately started to back off. With Musk promising to make Twitter friendlier to conservative voices, Truth began to look redundant and unnecessary. Stock in the SPAC dropped 15% in the aftermath of the news, according to Business Insider.
DWAC initially had great success as Trump supporters dumped money into the venture. The Truth Social app has thus far failed to catch on with a wide audience. As of earlier this month, Truth Social was the #36 ranked social media app on Apple’s App Store.
Experts are now saying that the company is dead in the water. Shares in DWAC could crash to $10 or less once Elon Musk’s acquisition is complete. Donald Trump has said he plans to stick with Truth Social rather than return to Twitter.
Others noted that while Musk’s purchase of Twitter hurts, Truth was doomed to fail regardless. Additionally, DWAC has been secretive about the details of the company. That leads to a lack of confidence from investors and is a hallmark of Trump-aligned businesses through the years.
We will have to wait and see if this is the end of Truth Social. Thus far, the venture has been a total flop. Trump could be heading towards yet another failed startup.
What do you think of this story? Share your thoughts in the comments!