What happened
Shares of Digital World Acquisition Corporation (DWAC) were moving higher today after former President Donald Trump was indicted yesterday by a New York grand jury.
Digital World Acquisition is the special purpose acquisition corporation (SPAC) that's set to merge with Trump's social media network, Truth Social, and investors seem to be betting that the indictment and expected trial will bring increased attention to the platform.
As a result, Digital World stock was up 5.5% as of 1:19 p.m. ET.
So what
Predictably, Trump took to Truth Social to protest the indictment, which relates to a hush money payment to porn star Stormy Daniels during the 2016 election campaign.
Whether the criminal proceedings actually elevate Trump's social media company remains to be seen.
The platform has struggled to gain traction since Trump launched it shortly after his defeat in the 2020 election and after he was banned from Twitter in the aftermath of the Jan. 6 riots.
Truth Social has been hampered by turnover at the executive level, competition with other right-wing Twitter knockoffs, and business troubles as the SPAC merger with Digital World has still yet to be completed.
Now what
Digital World has delayed its merger with Trump Media and Technology Group, the parent of Truth Social, causing the stock to flounder, now down roughly 85% from its peak in early 2022.
Just last week, DWAC fired CEO Patrick Orlando due to "unprecedented headwinds." With the merger itself seemingly in doubt and Truth Social already struggling, it will likely take a lot to make this a viable business.
