Digital World to return remaining $533M raised for Trump deal, Reuters reports

Digital World Acquisition Corp, the special purpose acquisition company, or SPAC, that plans to merge with Trump Media & Technology Group, said it would return to investors $533M raised for the deal after some already backtracked on $467M of commitments, reported Reuters’ Helen Coster. Digital World raised $1B in a private investment in public equity, or PIPE, transaction last year, but failed to complete the merger with TMTG by a September 2022 deadline, the report noted. TMTG CEO Devin Nunes said in a press release that terminating the PIPE was “in the best interest of TMTG’s equity holders and completing our merger with DWAC as soon as possible.” A TMTG spokesperson said in a statement to Reuters that the PIPE’s termination was “a key step toward completing our merger,” but did not respond to a question on why terminating the PIPE ahead of the merger was positive for TMTG.