Decision on Trump Media Merger Plan Is Deferred

The SPAC’s charter allows the sponsor to unilaterally extend the period for completing a deal if it contributes money to the special bank account that holds the dollars raised in the I.P.O.

The potential collapse of the deal has raised questions about the future of Trump Media Technology Group and its flagship social media app, Truth Social, the Twitter-like platform that Mr. Trump backed after Twitter barred him from posting after the Jan. 6, 2021, attack on the Capitol.

Digital World, which went public a year ago, had given itself until Sept. 8 — Thursday — to complete a merger with another company. Dual investigations into the deal by federal prosecutors and securities regulators have bogged down the merger and led to the delay.

Without the cash infusion from Digital World, Trump Media may need to raise additional financing or find another merger partner.

Article source: https://www.nytimes.com/2022/09/06/business/trump-media-merger.html