On Friday, Digital World Acquisition (DWAC) shareholders approved the SPAC’s proposed merger with Trump Media & Technology Group (TMTG), valuing TMTG at an enterprise value of about $1.1 billion at a transaction price of $10 per share. This merger has garnered significant attention due to high-profile legal issues, intense trading activity, and Trump’s recent win in the Republican primary. Many view this stock as a bet on Trump winning the US presidency in November 2024.
Despite the challenges de-SPACs face, DWAC’s stock has shown remarkable performance, rallying 111% year-to-date and closing at $36.94 on Friday, well above the offer price pre-merger. This makes it one of the few SPAC stocks to trade substantially higher post-merger.
The potential merger with TMTG has generated significant interest among investors despite past de-SPAC mergers over the last year averaging a -59% return. To access the full article and continue following this story, sign up for a free trial of IPO Pro.
