Shares of a SPAC linked to taking former President Donald Trump’s media and social media company public jumped Tuesday. Here’s what could be causing the sudden spike.
What Happened: Social media app Truth Social is part of Trump Media & Technology Group, a company going public via SPAC merger with Digital World Acquisition Corp (NASDAQ:DWAC).
Fox News, a unit of Fox Corp (NASDAQ:FOX)(NASDAQ:FOXA), officially joined Truth Social Tuesday with a verified news feed on the social media platform. The news was reported by Axios reporter Dan Primack.
“Truth Social today added formal/verified Fox News feed to its app. Notable, because most new brands — plus NFL, NASA, etc. — only have ‘bot feeds’ on the site, even though Truth Social promotes them,” Primack tweeted.
Related Link: 7 Details We Learned From The Donald Trump SPAC Deal
Why It’s Important: Shares of Digital World Acquisition traded down over the past two weeks thanks to news that Tesla Inc (NASDAQ:TSLA) CEO Elon Musk took a stake in Twitter. The news of the stake led to some speculation that there could be a push to welcome back banned accounts to Twitter, including Trump.
It was recently reported that downloads of Truth Social, which is available only on Apple Inc (NASDAQ:AAPL) iOS devices, had dropped by 93% since the first week of app availability. App downloads were around 60,000 per week.
Trump has not posted on Truth Social for months. The inclusion of a popular news site that often appeals to the demographic Truth Social is targeting could be a positive to add and retain users on the social media platform.
DWAC Price Action: Digital World Acquisition shares were up 5.90% to $48.13 on Tuesday at market close.
