Update: (April 12, 2024) While DJT opened strong after the merger rising to over $70 a share, it has has since dropped to $32 a share.

In recent times, the spotlight has turned towards former President Donald J. Trump’s Truth Social merger with Digital World Acquisition Corp, stock ticker DWAC. This strategic move marks a significant shift in the digital and political landscape, intertwining the fate of a former president with that of a burgeoning social media platform.

This article delves into the intricacies of the merger, its implications, and the subsequent reactions from various sectors.

Truth Social’s Genesis and Mission

Founded in 2021 by former President Donald J. Trump, Truth Social was established in response to being banned from mainstream social media platforms such as X, formerly known as Twitter and Facebook. Designed to serve as a haven for “free speech,” the platform appeals to users in search of alternatives to the established social media giants that impose censorship on their users.

The Role of DWAC

Digital World Acquisition Corp., a special purpose acquisition company (SPAC), has been instrumental in bringing Truth to the stock market, reflecting a significant transition for Trump’s media ambitions from private ventures to public investment opportunities. This move has garnered immense attention, with investors closely watching the developments surrounding the Truth Social merger and its potential impact on the digital media landscape.

The Merger: An Overview

Details and Dynamics

The merger between DWAC and Trump Media & Technology Group (TMTG), valued at around $5.7 billion, represents a major pivot for both entities. Trump’s majority stake and the associated conditions, such as the six-month lockup period post-merger, underscore the deal’s strategic importance.

Implications for Stakeholders

The merger not only bolsters its market position but also reinstates Trump’s influence in the financial domain. However, this amalgamation comes with its set of challenges, especially considering the platform’s struggle to capture a mainstream audience.

Economic Outlook

With a projected $17 million in revenue and a tumultuous stock performance, the financial contours of the Truth Social merger paint a complex picture. Investor sentiments have been fluctuating, reflecting the platform’s uncertain future and the volatile nature of the tech and media sectors.

User Base and Popularity

Understanding the Platform’s Reach

Despite its ambitions, Truth has not achieved the mainstream success of competitors like X. With only 2% of Americans using Truth for news and a significant decline in user engagement since its inception, the platform faces an uphill battle in expanding its user base.

Comparative Metrics

According to a CNN report, the platform’s struggle is further highlighted when comparing Trump’s follower count: 6.7 million on Truth versus his previous 87 million on X. This stark difference underscores the challenges Truth Social faces in attracting a larger audience.

Trump’s Role and Influence

The Personal Platform

Now officially the GOP’s Presidential nominee, candidate Trump’s active participation on the app, using it as his primary communication tool post-presidency, keeps his base engaged. His posts, often viewed as controversial, continue to spark media coverage, inadvertently boosting the platform’s visibility.

Political Echoes and Public Sentiment

The platform acts as a vital channel for Trump to maintain his political narrative and gather support, serving as a digital rally point for his base. By enabling direct communication, Truth Social facilitates engagement with a dedicated group of followers, helping to solidify and extend his political influence.

This focused approach allows for the mobilization and coordination of supporters, enhancing the platform’s role as a hub for like-minded individuals. While primarily catering to those already aligned with Trump’s views, it presents an opportunity for expanding discourse and potentially attracting a wider array of users interested in diverse political perspectives.

Regulatory and Legal Challenges

Legal Headwinds

The Truth Social merger has navigated through a complex landscape, marked by various legal proceedings and investigations. These challenges have been part of the platform’s journey, contributing to its evolving narrative in the tech and media landscape.

Despite these circumstances, Truth continues to focus on its mission and objectives, aiming to enhance its market position and secure its financial future. The experiences garnered through addressing these legal matters are shaping the platform’s strategies for sustainable growth and stability.

Market Reaction and Investor Sentiment

Financial Markets’ Response

The stock market’s reaction to the Truth Social merger has been mixed, with DWAC shares experiencing significant fluctuations. This instability reflects the market’s uncertainty about the platform’s long-term viability and profitability.

Comparative Analysis

Market Positioning Against Giants

Truth’s competition with mainstream platforms highlights its limitations and the monumental task of carving out a significant market share. While it offers a niche for certain political and social viewpoints, it lacks the universal appeal necessary for widespread adoption. This reality poses a significant challenge for the platform as it seeks to expand its user base and influence.

Future Prospects

Strategic Directions and Challenges

The future of the Truth Social merger hinges on strategic decisions, including potential partnerships, content diversification, and platform enhancements. However, overcoming the entrenched competition and shifting public sentiment remains a formidable challenge.

Public Perception and Media Coverage

Media Dynamics

Media coverage, while boosting visibility, often emphasizes the platform’s polarization and niche market, potentially deterring broader demographic engagement. The platform’s success in altering this narrative will be crucial to its growth.

Global Impact and Broader Implications

Influence Beyond Borders

The implications of Truth Social’s rise extend beyond the United States, affecting global political discourse and social media trends. Its performance and strategies will likely influence future platforms catering to specific political or social segments.

From DWAC to DJT

The Truth Social merger represents a significant milestone in the intersection of media, technology, and politics. While the platform has faced challenges in user engagement and financial stability, its future depends on navigating legal hurdles, expanding its user base, and solidifying its position in the social media landscape. As the platform evolves, so too will its impact on public discourse and political communication.

A WallStreetBet’s Take: Bull Vs. Bear

WallStreetBets’ Chester Ming lays out the bull vs. bear reasoning for investing in or passing on the newly formed DJT stock.

Bull vs Bear


  • Trump is a hype machine.
  • Truth Social is a soapbox for Trump, and everyone listens to what he says.
  • The run-up to the election will generate a lot of hype.
  • If Trump wins the election, DJT could trade on hype for a long time
  • In theory, if he does win the election, TMTG could become significantly more relevant, leading to an improvement in its fundamentals.
  • If the above happens, it’s possible TMTG could bring to market their other proposed ventures – a news network and competitor to the existing streaming services.


  • If Trump loses the election, it’s all over, TMTG will probably go bankrupt.
  • DJT will be propped up by just hype, not adequate shareholder equity, which is volatile and unstable.
  • The dilution could cause a significant drop in share price if there isn’t enough hype to offset it.
  • SPACs have had a terrible track record in recent years, especially those with poor fundamentals.
  • TMTG has no path to profitability in the foreseeable future. It has not provided any updated business plans, future growth estimates, guidance or updated revenue projections.
  • The other proposed ventures (news network, streaming service) are extremely expensive to get going. TMTG *could* have gained the cash to do this through the merger, but unwound it, making these ventures completely unfeasible with the cash DJT will get in this merger.


What company is merging with Truth Social?

Digital World Acquisition Corp., a publicly traded shell company, merged with Truth Social, the social networking site initiated by former President Trump.

How has the stock market reacted to the Truth Social merger with DWAC?

The stock market has shown mixed reactions, with fluctuations reflecting investor uncertainties regarding the platform’s future.

What is a blank check merger?

A blank check firm is a type of startup that doesn’t yet have a set plan for what it’s going to do. Its main goal is usually to merge with or buy another company, but it hasn’t decided which one yet. This kind of company is like a puzzle missing a piece; it’s looking for the right fit to complete its picture.

What is the Truth Social ticker?

The ticker symbol for the Truth Social merger is DJT, for Donald J. Trump. The stock could start trading on the stock market as early as March 25, 2024.

Who primarily uses Truth Social?

Truth Social predominantly attracts followers of former President, Donald J. Trump, along with a wide-ranging, international audience that values the principle of free expression. The user base consists of people from various backgrounds who share a common interest in discussing and promoting free speech values.

Is Truth Social free?

Yes, Truth Social is available for free.

The platform made its debut on the Apple App Store in February 2022, and quickly climbed to become one of the top free apps downloaded from Apple’s store, indicating its immediate popularity among users. This surge reflects a significant interest in the platform, especially among individuals looking for alternative social media spaces.

What are the future prospects for social media platforms like Truth Social?

The future for platforms like Truth Social depends on their ability to diversify content, engage broader demographics, and navigate legal and financial challenges.

How does candidate Trump’s influence affect Truth Social’s media coverage and public perception?

President Trump’s influence significantly amplifies media attention towards Truth Social. His active participation and direct communication on the platform attract a wide audience, leading to increased visibility in the media landscape.

Download Truth Social from the app store.