(RepublicanInformer.com)- Former President Trump’s new social media company announced on Saturday it had entered into agreements with investors to raise about $1 billion.
Digital World Acquisition Corp (DWAC), the firm that will take Trump Media & Technology Group Corp (TMTG) public, announced that it was providing up to $293 million in its partnership with TMTG, bringing the total capital investment in TMTG to about $1.25 billion.
According to TMTG and DWAC, the $1 billion will be raised through a PIPE (private investment in public equity) transaction from a group of unnamed investors.
In October, TMTG signed its deal with DWAC to go public at a valuation of $875 million, including debt. Now the social media venture is valued at almost $4 billion based on DWAC’s share price at the close of trading on Friday.
According to Reuters, many Wall Street firms turned their noses up at investing in the PIPE out of a reluctance to associate with former President Trump. The investors who did participate were hedge funds, family offices, and high net-worth individuals.
In a statement on Saturday, Mr. Trump said as the company’s balance sheet expands, TMTG is in a stronger position “to fight back against the tyranny of Big Tech.”
Last month, Democrat Senator Elizabeth Warren urged Securities and Exchange Commission Chairman Gary Gensler to investigate the planned merger between DWAC and TMTG for possible securities violations.
According to a presentation on TMTG’s website, before he was blocked, former President Trump had 89 million followers on Twitter, 33 million on Facebook, and 24.5 million on Instagram.
Investors who attended confidential investor roadshows were shown a demo of the planned social media app, Truth Social, which looked very similar to Twitter.
The full rollout for Truth Social is scheduled for the first quarter of 2022. It is just the first of three stages in the Trump media plan. Next up will be a subscription video streaming service called TMTG+ that will feature entertainment, news, and podcasts.
In its third stage, Trump Media & Technology Group envisions eventually competing against Amazon’s AWS cloud service and Google Cloud.