Business
Trump’S Media Firm: Digital World, Trump’s media firm add new termination clause to merger deal
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Digital World Acquisition and former US President Donald Trump’s media company have added an option that allows them to terminate their merger deal between October 31 and November 21, a regulatory filing showed on Monday.
The move comes weeks after Digital World investors voted to give up to a one-year extension to complete the much-delayed deal.
The blank-check firm amended the merger agreement on September 29, according to the filing, which also disclosed that Digital World can terminate the agreement only in that three-week period in November.
Either of the two companies can decide to terminate the deal if their respective boards no longer believe the merger will benefit shareholders.
“The Third Amendment extends the period of time for the parties to complete mutual supplemental due diligence ahead of DWAC’s anticipated filing of an updated registration statement on Form S-4 with the Securities and Exchange Commission,” the companies said in a release dated September 29.
Both firms did not immediately respond to Reuters’ requests for comment.
Digital World has faced a series of challenges since it stuck a merger deal with Trump Media & Technology Group (TMTG) on October 2021. It has been a target of investigations by the US Department of Justice and the Securities and Exchange Commission (SEC).
If the merger closes, Trump Media would gain access to more than $1 billion in cash from DWAC’s institutional investors, such as hedge funds. According to a February 2, 2021 services agreement, Trump controls 90% of Trump Media.
The move comes weeks after Digital World investors voted to give up to a one-year extension to complete the much-delayed deal.
The blank-check firm amended the merger agreement on September 29, according to the filing, which also disclosed that Digital World can terminate the agreement only in that three-week period in November.
Either of the two companies can decide to terminate the deal if their respective boards no longer believe the merger will benefit shareholders.
“The Third Amendment extends the period of time for the parties to complete mutual supplemental due diligence ahead of DWAC’s anticipated filing of an updated registration statement on Form S-4 with the Securities and Exchange Commission,” the companies said in a release dated September 29.
Both firms did not immediately respond to Reuters’ requests for comment.
Digital World has faced a series of challenges since it stuck a merger deal with Trump Media & Technology Group (TMTG) on October 2021. It has been a target of investigations by the US Department of Justice and the Securities and Exchange Commission (SEC).
If the merger closes, Trump Media would gain access to more than $1 billion in cash from DWAC’s institutional investors, such as hedge funds. According to a February 2, 2021 services agreement, Trump controls 90% of Trump Media.
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