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Company behind Trump's social media app sees its stock value plunge
February 7, 2022 6:44PM ET
President Donald Trump (Screen cap).
Digital World Acquisition Corporation, the company behind former President Donald Trump's social media venture, saw its stock value plunge in late trading on Monday.
As CNBC reports, Digital World Acquisition's share value took a nosedive after news started spreading that there would be a delay in the launch of its app.
"The company... opened trading Monday at $87.02 per share, and spiked to as high as $97.15 earlier Monday," writes CNBC. "But the stock price began plunging around 3:30 p.m. ET, and fell to as low as $80.45 per share."
While Digital World had initially said that the Trump-backed Truth Social app would launch this month, recently appointed Trump Media and Technology Group CEO Devin Nunes recently pushed that date back to March 31st.
Digital World Acquisition is what's known as a special purpose acquisition company (SPAC), which is essentially a company that raises money from investors and then goes searching for another company to merge with.
This particular deal with Trump's social media venture has raised eyebrows given how quickly it was put together, as most SPACs normally take over a year to find a buying partner.
IN OTHER NEWS: National Archives says Trump representatives are still looking for additional docs he smuggled to Mar-a-Lago
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