Say what you will about Donald Trump, and depending on who you talk to, he’s either a monster in human skin or the greatest thing since someone figured out how to deep-fry a Twinkie. And his SPAC, Digital World Acquisition (NASDAQ:DWAC) is also something of a mixed bag in terms of perception. Today, however, it’s up slightly, thanks to a new shareholder vote that delayed a merger.
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The shareholder vote dealt with the topic of merging Digital World with Trump Media & Technology. Now, the merger will be delayed another year as a result of the vote. It was originally set to start up last month, but the SPAC tried to get more votes on its side. Had it failed to draw in the necessary votes, it would have had to shut down altogether and give back $300 million to shareholders. Now, however, the SPAC has another year to set up a merger.
There are several potential points of failure ahead, though. If Trump Media decides, it can crash the whole deal on September 30 by just walking away. Further, Trump Media can slip out by October 13 if Digital World doesn’t file an “amended registration statement” by October 9. And Digital World itself can end the process itself if it would rather. It’s already had its share of problems; one former board member has already been arrested for insider trading, and its former chief executive has been tossed out by the board itself.
A look at the last five trading days for DWAC stock shows that it was on something of an upward track until today. Then, it briefly shot up before retracing most of its gains. Now, it’s back down to only slightly higher than it was a few days prior.
