TROUBLE BREWING FOR TRUTH SOCIAL

A firm that agreed to merge with the parent company of former President Trump’s social media platform Truth Social failed to receive enough support from its shareholders to extend the amount of time it has to close the deal, according to Reuters.

Reuters reported on Tuesday that people familiar with the matter said Digital World Acquisition Corp. (DWAC) did not receive the necessary support from 65 percent of its shareholders to extend the proposed deal by 12 months.

DWAC said in a court filing last month that the success of the deal will depend on the “reputation and popularity” of Trump, who serves as the chairman of Trump Media and Technology Group (TMTG), which owns Truth Social.

The filing set a special shareholder meeting on Tuesday to discuss extending the Thursday deadline to complete the merger by one year. DWAC will dissolve if the extension is not approved.