Alternative tech is on the rise. With more and more Americans waking up to the danger posed by tech censorship, with even Ron DeSantis calling Big Tech the censorship arm of the Democrat Party, conservative Americans especially are ditching Big Tech platforms in droves.
Parler, Gettr, and Gab have been some of the most successful, but everyone who’s interested in the alternative tech platforms has been waiting for the release of Trump’s social media platform, rumors about which were circulating for months before the former president announced the creation of “Truth Social,” a Twitter-like platform with a commitment to free speech.
To create an exceptional platform, or even a merely usable one, the company will need funds. So, it’s been doing some fundraising.
First, using a SPAC, a trading vehicle that lets private companies like Truth Social raise funds from public markets, the company raised a large amount of money and investor confidence pushed the SPAC’s market price up over 600% in one day, with trading halted 5 times.
To capitalize on that success and raise more needed funds, raising over $1 billion dollars.
TMTG, the company’s website, had this to say in a December press release, describing how the “PIPE” deal would be beneficial for the company by strengthing the company’s financial position, sending a powerful message to Big Tech, and help it hire top-notch personnel:
President Donald J. Trump, Chairman of TMTG, stated, “$1 billion sends an important message to Big Tech that censorship and political discrimination must end. America is ready for TRUTH Social, a platform that will not discriminate on the basis of political ideology. As our balance sheet expands, TMTG will be in a stronger position to fight back against the tyranny of Big Tech.”
Patrick Orlando, Chairman and CEO of Digital World Acquisition Corp., commented, “Our focus on delivering public shareholder value drives our decision-making and by accepting these commitments for a strategic infusion of growth capital, we believe the combined company can grow on an incredibly strong foundation. The liquidity that will be provided to the combined company balance sheet, in excess of the up to $293 million (less expenses) that DWAC may provide, should fortify the strategic positioning of TMTG. I am confident that TMTG can effectively deploy this capital to accelerate and strengthen the execution of its business, including by continuing to attract top talent, hire top technology providers, and roll out significant advertising and business development campaigns.”
Together, the transaction will provide estimated proceeds of approximately $1.25 billion (after deducting estimated deal expenses), assuming full delivery of the amount of cash held in trust by DWAC, to be used to fund operations of the combined entity.
After the deal, the company’s value is about $4 billion.
It is yet, however, to release a product. According to the App Store, where Truth Social is available for pre-order (despite being free), it will be released sometime in February 2022.