Former President Donald Trump’s social media startup is in jeopardy of losing its business partners’ support on Tuesday, imperiling Truth Social’s longer-term plans.
Digital World Acquisition Corp. (DWAC) said last month it needed more time to complete its merger with Mr. Trump’s team and asked for stockholder approval of an extension to September 2023 at a meeting on Tuesday afternoon.
Not enough stockholders are prepared to support granting the extension for the merger with Trump Media & Technology Group for it to succeed, according to Reuters.
DWAC, a special-purpose acquisition company, said in a regulatory filing last month that if its extension lacked the necessary support, it would consider postponing the meeting to solicit more votes in hopes of winning a delay.
Absent approval of the longer timeline for the merger agreement, Mr. Trump’s business partners said their board believed it would not be able to complete the transaction before its September 2022 deadline and would be forced to liquidate stock.
Trump Media & Technology Group said it will continue cooperating with all stakeholders in its planned merger and hopes the U.S. Securities and Exchange Commission completes its review of the transaction without political interference.
“Truth Social is continuing to grow rapidly, driven by extraordinary user engagement and the recent launch of ads on the platform,” the company said in a statement.
• Ryan Lovelace can be reached at email@example.com.
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