US Expands Probe Into Trump Media Merger as Netizens Accuse ‘Truth Social’ of Censorship

A planned merger between Digital World Acquisition Corp. and Trump Media & Technology Group has been under SEC investigation since late 2021. As financial regulators examine communications between the two firms, the special purpose acquisition company floundered in the US markets, with shares down more than 13% since the start of the year.

Blank check company Digital World Acquisition Corp (DWAC) revealed on Monday that regulators are seeking additional information in the SEC probe on the special purpose acquisition company (SPAC) buying Trump Media & Technology Group (TMTG), the company behind former US President Donald Trump’s social media platform ‘Truth Social.’

Financial regulators are requesting the SPAC turn over additional information on “communications regarding and due diligence of potential targets other than TMTG, relationships between and among Digital World … and other entities,” as well as payments made to certain advisers and "certain elements of the transaction history for equity."

The expanded scope appears to be a hard look into the relationship DWAC may have had with the former US president and his media company prior to the decision for the merger, which must be between two separate entities and could not be coordinated before the SPAC goes public.

The extent of Trump’s communications and relationship with DWAC were brought into question not long after the New York Times reported in October that Patrick Orlando, chief executive officer of DWAC, met with Trump representatives and discussed his media plan as early as April.

A TMTG spokesperson denied the claim and said Orlando had discussions regarding a separate partnership between Trump and another SPAC that he presides over.

Investigators previously sought a range of information from DWAC, including information on company leadership, investors, and other communications. At the time, DWAC claimed accounting delays were behind its delayed issuances to regulators.

The SEC is specifically seeking financial information included in the company’s “registration statement.” The subsequent examination “could materially delay, materially impede, or prevent the consummation of the Business Combination,” the filing states.

As DWAC struggles to maintain in Nasdaq, Truth Social’s moderation, or “censorship” has remained a point of contention since the fledgling social media platform launched several months ago. In recent days, several users of the app claimed their accounts were permanently suspended after posting about the House’s public hearings on the January 6 insurrection.

https://sputniknews.com/20220614/us-expands-probe-into-trump-media-merger-as-netizens-accuse-truth-social-of-censorship-1096292070.html