It has been suggested that this article be merged into Trump Media & Technology Group. (Discuss) Proposed since April 2024. |
Company type | Public |
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| |
Industry | Special-purpose acquisition company (SPAC) |
Founded | 11 December 2020 |
Defunct | March 2024 |
Fate | Merged with Trump Media & Technology Group |
Website | dwacspac |
Digital World Acquisition Corp. (DWAC), founded in 2021, was an American special-purpose acquisition company (SPAC), a shell corporation listed on a stock exchange with the purpose of acquiring (or merging with) a private company, thus making the private company public without going through the initial public offering process, which often carries significant procedural and regulatory burdens.[1][2] The company was led by CEO and Chairman Patrick Orlando, the founder and CEO of investment consulting and investment banking firm Benessere Capital.[3] In October 2021, the company announced a proposed merger agreement with Trump Media & Technology Group (TMTG), the owner of Truth Social, which completed in March 2024.[4][5]
So what is a SPAC? A "special purpose acquisition company" is a way for a company to go public without all the paperwork of a traditional IPO, or initial public offering. In an IPO, a company announces it wants to go public, then discloses a lot of details about its business operations. After that, investors put money into the company in exchange for shares. A SPAC flips that process around. Investors pool their money together first, with no idea what company they're investing in. The SPAC goes public as a shell company. The required disclosures are easier than those for a regular IPO, because a pile of money doesn't have any business operations to describe. Then, generally, the SPAC goes out and looks for a real company that wants to go public, and they merge together. The company gets the stock ticker and the pile of money much more quickly than through a normal IPO.
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