What happened
Shares of Digital World Acquisition (DWAC) continue to run higher on Wednesday, with the blank check company rising 13.2% at 11:40 a.m. ET.
It's the second consecutive day of double-digit stock gains following the announcement that Twitter's (TWTR) board of directors has agreed to Elon Musk's buyout offer. The stock was up over 14% yesterday.
Image source: Official White House photo by Joyce N. Bhogosian.
So what
Digital World, of course, is the special purpose acquisition company (SPAC) looking to take Trump Media & Technology Group (TMTG) public. TMTG is the overseer of President Trump's Truth Social social media platform, a Twitter alternative.
Twitter banned Trump from its platform following the 2020 election, and many people expected Trump to return now that Musk is buying the company. That would naturally undercut the premise for Truth Social's existence, but Trump recently declared he is not coming back to Twitter, which has provided an additional boost for the SPAC.
Now what
While Digital World has gotten a boost this week, the reverse merger between it and TMTG is still not assured since the Securities & Exchange Commission is investigating possible breaches of the rules SPACs must operate under before taking a company public.
But with Twitter being bought by Musk and Trump saying he will not be a part of the social media platform again, investors are hopeful there will soon be a competitive environment for the free exchange of ideas.
