Trump plans to launch new social media network

Trump plans to launch new social media network

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Islam News- US Former President Donald Trump on Wednesday announced plans to launch a social media network called “Truth Social,” and that it would go public via a SPAC.

Why it matters: Most ex-presidents are focused on their legacies, by creating presidential libraries or engaging in philanthropic endeavors. Trump, however, remains consumed by social media.

Between the lines: Details, such as who will be company CEO, are scarce.

The SPAC is led by Patrick Orlando, who has raised several SPACs but has yet to successfully use one to take a company public. He did have one deal signed, with a company called Giga Energy, but it was called off before being consummated.
Trump’s team initially told Axios that the SPAC had yet to file a 8-K detailing merger details. Such paperwork is necessary for any deal to proceed. A spokesperson for the SPAC later confirmed that it has been filed, apparently after hours, which means it should become available early Thursday morning on the SEC.gov website.

The SPAC has $293 million in assets, but that amount could be reduced if investors dislike the deal and choose to redeem their units.
Details: The holding company for the app is called Trump Media & Technology Group (TMTG).

It plans to launch a subscription streaming service called TMTG+. This is the one area where we have an exec name: Scott St. John, former executive producer of both “Deal or No Deal’ and “America’s Got Talent.”

A 22-page pitch-deck looks very familiar, and in at least one case identical, to a pitch-deck Axios reported on earlier this year.

Of note: The group says its mission is “to create a rival to the liberal media consortium and fight back against the ‘Big Tech’ companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America.”

Social media censorship has become one of his biggest talking points, even before mainstream social apps banned him following the Capital insurrection.

The company says that Truth Social plans to begin its Beta Launch for invited guests in November 2021, and that a nationwide rollout is expected in the first quarter of 2022.

Be smart: Don’t pay attention to the potential $1.7 billion valuation listed in the press release. That figure is based on unspecified price increases to a stock that hasn’t even successfully listed yet.

The big picture: Trump has been trying to build an alternative social media network for many months.

In July, Jason Miller, a former aide and close adviser to Trump launched a new social app called “Gettr.” It launched without Trump’s participation after the two parties couldn’t come to a deal.

“Congratulations to President Trump for re-entering the social media fray!” Miller said in a statement. “Now Facebook and Twitter will lose even more market share.”

In March, Axios reported that Trump’s team had been in contact with FreeSpace, a small and nascent social app to build its own social network. It’s unclear what happened to those talks.
Bottom line: There are not yet enough details to suggest that this deal has much legitimacy.

Source: Axios