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Trump’s Digital World Acquisition Plummets 12% As Musk Reaches Twitter Deal
Donald Trump’s Special Purpose Acquisition Company (SPAC), Digital World Acquisition (NASDAQ: DWAC) which is taking Trump’s social media company public dropped 12% on April 25.
Muskaan T.
2:54 26th Apr, 2022
Markets

This loss comes as a response to Elon Musk agreeing to buy Twitter (NASDAQ: TWTR) for $44 billion. With this move, Musk pulled off one of the biggest leveraged buyouts in history by paying up $54.20 per share for the social media company. Musk tweeted:

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated. I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”

Trump is possibly not enjoying Musk’s latest move since he himself was banned from Twitter. Investors in Trump’s SPAC could possibly be worried about increasing competition with Twitter as free speech is one of the elements Musk claimed are the reason for a buyout.

On Fox News, Trump said:

“I am not going on Twitter, I am going to stay on TRUTH, I hope Elon buys Twitter because he’ll make improvements to it and he is a good man, but I am going to be staying on TRUTH.”

Nevertheless, whether Trumps social media platform will be able to compete with Twitter with Musk behind the drivers seat remains to be seen. Notably, market analyst Dan Ives pointed out:

“Elon Musk owning TWTR is bullish for the stock, and for any competing platform it is going to be tougher and tougher.”

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