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US authorities are scrutinizing the Trump social media Spac alliance

U.S. executives are investigating Digital World Acquisition Corp., a non-checking company that began to associate itself with Donald Trump’s initiatives in the media, to seek out more pre-market advertising and how the two groups work.

The Securities and Exchange Commission in November requested documents regarding corporate conferences for private purposes and business information, business information and links between Digital World and Trump Media and Technology Group, according to a Spac release. Monday.

The US broker-dealer Finra also asked Digital World to share more information before announcing the deal, the reservation said.

Digital World said in a statement that it was in agreement with the editors and that their requests did not indicate that they had confirmed that an error had occurred.

a Trump company, which has the social networking site Truth Social, a podcast and advertising campaign, said on Saturday earned $ 1bn from anonymous depositors. On Monday, the cheering group of the former “non-wake” US president unmistakably revealed that by 2026 it would make $ 3.7bn in revenue from 81 million users.

The better prediction takes TMTG to create an advertising campaign called TMTG +, which Trump believes will compete with Netflix and Disney Plus – services that have attracted hundreds of millions of subscribers.

“Americans want ‘entertainment without waking up,” according to a statement on the company’s website. The sermon features photographs of a former president handing out a cup to a Sumo fighter and a park with the theme “stop wondering, start walking around”.

Trump predicts that his advertising campaign will reach 40m subscribers by 2026. In contrast, Fox Nation, a promotional campaign launched by Lachlan Murdoch’s Fox News to monitor people, reportedly signed less than 1.2m subscribers since its inception in 2018.

Trump has hired Scott St John, a former sports producer, to run the promotional business. St John has created NBC-like “Deal or No Deal” shows, in which competitors choose from a group of stickers to win money.

Trump launched Truth Social, a social networking site with no program or existing website, in October. Former President they are forbidden from several major technical platforms, including Twitter, Facebook and YouTube, following the January 6 attacks on the US Capitol.

The survey comes amid growing research on companies that have opted to register via Spacs, as U.S. regulators are concerned about being able to monitor the areas in which they are used to provide public services.

Lucid Motors, a group of electric cars known for one of the biggest Spac events in history, on Monday. revealed that he received a subpoena from the SEC, while supervisor in July stupid Stable Road Acquisition Company and its co-founder Brian Kabot in a joint venture with Momentus Inc, an aerospace manufacturer, to expose the allegations.

Gary Gensler, chairman of the SEC, said there were “risks going to Spac, as those who would like to make a big profit on Spac’s integration could make an insufficient effort and mislead investors”.

The SEC declined to comment. Finra did not immediately respond to a request for comment.

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