Trump Media & Technology Group

Digital World Acquisition Corp (DWAC) announced its merger with Trump Media & Technology Group in October 2021, creating the most unusual SPAC in history. The deal was immediately controversial — the SEC launched an investigation into potential merger discussions before the SPAC IPO, which is prohibited.

The merger took over two years to close due to the SEC investigation, shareholder lawsuits, and complex legal proceedings. DWAC's CEO Patrick Orlando was charged with fraud related to the deal. Despite these obstacles, the merger finally closed in March 2024 — just as Trump was running for president again.

Trump Media operates Truth Social, a social media platform created after Trump was banned from Twitter (now X). The platform has a fraction of the users and revenue of established social networks — approximately $4 million in annual revenue and significant operating losses.

Yet the stock has defied fundamental analysis entirely. It trades as a political meme stock, surging on Trump polling numbers and falling on negative political news. The stock peaked at $79.38, giving Trump Media a market cap exceeding $10 billion — roughly 2,500x its annual revenue. Trump himself holds over 50% of shares, making his stake worth billions on paper. It's perhaps the ultimate illustration of how disconnected SPAC valuations can be from business fundamentals.