TRUTH Social: Donald Trump introduces a new social media network
Analysts believe it’s been a long time coming since Trump’s SPAC (special purpose acquisition company) deal got off the ground.
Former President Donald Trump’s company, Trump Media and Technology Group, announced the launch of a new social network called TRUTH Social on Wednesday.
According to a press statement, a test version will be accessible to invited visitors in November, with a countrywide launch planned in the first quarter of 2022.
The company’s stated goal is to establish an alternative to the liberal media consortium and fight back against Silicon Valley‘s ‘Big Tech’ companies.
Subscription-based on-demand video service TMTG+ also planned
According to the press release, Donald Trump is launching a subscription video service called “TMTG+” also that would include ‘non-woke’ entertainment programmes, news, podcasts, and more.
Trump’s new company formed using SPAC to develop TRUTH Social
Analysts say this was long-awaited after Trump SPAC (special purpose acquisition company) agreement materialized.
The combination with Digital World Acquisition Corp, which just went public last month after reducing its offering, will allow the company to develop TRUTH Social, a new social network, as well as a ‘non-woke’ streaming platform.
SPAC has become popular on Wall Street
SPACs are publicly traded but do not operate in the real world. A SPAC is nothing more than a pool of money from investors. The objective is to utilise those millions of dollars to take a private business public without going through the long-established initial public offering procedure.
It is in place to mention here that SPAC, a new procedure to float a stock on Wall Street, has grown trendy in the two years following the disastrous IPO of the office-sharing firm WeWork.
Big institutions and small-pocketed investors alike have welcomed special purpose acquisition companies. They have been also endorsed by celebrities and well-known athletes.
So far this year, SPACs have raised more than $96.5 billion in less than three months. According to SPACInsider, this surpasses the $83.3 billion raised in the entire previous year, which was six times more than the year before. Last year, well-known businesses such as Draftkings and Virgin Galactic went public through a SPAC.
Banks, regulators, and some investors are now taking a more cautious approach to these hot assets. Critics point to dangers inherent in the way SPACs are built, while others view the manic enthusiasm for them as a symptom of a stock market bubble.
