Trump raises $1 billion for his future social network

The company responsible for establishing a future social network for former US President Donald Trump, and the company that will merge with it to list on the stock exchange, announced that a group of investment institutions pledged to contribute to the project with one billion dollars.

This amount is in addition to the $293 million raised by Digital World Acquisition Corp when it went public on Wall Street in September, according to a statement.

After deducting transaction fees, the Trump Group for Media and Technology will raise $1.25 billion to fund the launch of the former president's social network, the statement added.

The two companies did not mention the identity of the investment institutions that pledged to provide the funds.

Trump announced at the end of October that the company that would build his future social network would merge with Digital World Acquisition Corp., an acquisition company, or "plumber" in English.

This modern financial instrument is like a "blank check" that raises money in the stock market by committing to merging in the following months with a promising company, thus allowing the latter to enter Wall Street without going the traditional path.

The former president had introduced the futuristic platform called Truth Social as an alternative to the Facebook, Twitter and YouTube platforms that had banned his accounts for inciting violence against his supporters prior to the January 6 attack on Capitol Hill.

The application is currently available for pre-order on the Apple Store, and is supposed to be launched in the first quarter of 2022.

Prompted by the interest of individual investors, the share price of Plumber rose after announcing its merger with Trump Corporation, from about $10 to $175 at its peak in two days.

But the price fell and closed at $45 on Friday, giving the company a valuation of $1.67 billion.

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