The merger between Trump Media & Technology Group and Digital World Acquisition Corp., which seeks to make Trump’s social media platform “Truth Social” public through a blank check company, is facing delays in obtaining regulatory approval.
Bloomberg reportedly spoke with two individuals who are knowledgeable about the matter that said, “Truth Social has trimmed staff while awaiting regulatory approval for a merger.”
The people explained half a dozen employees, including top management team members, such as Chief Technology Officer William “BJ” Lawson, were laid off. The move appears to be in response to capital running out at the social media company.
“Some close to Trump Media estimate it can fund operations through September at present spending levels,” the people said.
Weeks ago, Trump Media’s general counsel sent a letter to the Securities and Exchange Commission about the reviewal process. They said, “endless investigation of the DWAC-TMTG merger clearly constitutes an unprecedented attempt to kill the deal without any finding of wrongdoing.” Also, the lawyers asked Congress to investigate the matter.
Sources have reported that Trump Media executives, who were optimistic about the advertising revenue that Truth Social could generate, have found the process to be more complicated than they initially anticipated.
DWAC shares continued to slide as the entire SPAC bubble imploded due to restrictive monetary conditions.
Additionally, there are concerns that monthly web and desktop visits to the social media platform have decreased by almost half since peaking in August 2022, potentially due to the fact that Elon Musk’s Twitter has surged in activity since he acquired it last fall.