SEC approves Trump Truth Social deal for up to $10 billion

The United States Securities and Exchange Commission (SEC) has approved a merger of former President Donald Trump's social media platform, Truth Social, with Digital World Acquisition Corporation (DWAC), which is a Special Purpose Acquisition Company (SPAC). 

There were two years of delay leading up to the deal because of an investigation into the company by regulators. Now the SEC has approved the merger of approximately $10 billion after the long wait on Wall Street, according to reporting from OANN.  

The Trump Media & Technology Group, which owned both companies, intends to take Truth Social public in an initial public offering (IPO). In order to have it go through the process, Trump had to give up a lot of equity in the platform.  

According to SEC filings, Trump will own about $79 million in shares of the business. DWAC shares were trading at around $45-47 per share as of Tuesday. Depending on how the IPO will go, Trump's ownership ranges between 60-70 percent of the company.  

Ahead of the election, the platform could become a boon for Trump depending on how the results of the primary and 2024 race play out.  

Trump has full control of DWAC. Part of the agreement with the corporation is that no personal or political actions of his could disrupt his authority in the company even if such conduct was “dishonest, illegal, immoral, or unethical.”  

The former president will have authority to choose board of director members and will be able to delegate control of the company. Trump would also possibly be able to obstruct actions that shareholders normally would need consent to.