A business entity linked to Donald Trump's social media outlet says it has reached an agreement with securities regulators to acquire the company.
Blank-check firm Digital World Acquisition Corp. announced it has agreed in principle with the Securities and Exchange Commission on a merger with Truth Social, which would then become a publicly traded company if certain conditions are met, reported Axios.
The SEC had been investigating whether DWAC executives held merger discussions with Truth Social's parent company before its initial public offering in 2021, which isn't allowed, and the firm would be required to pay an $18 million penalty after the closing of a merger.
DWAC has until Sept. 8 to close a deal on a merger, and the company indicated in its SEC filing that Truth Social's parent company disagrees about being obligated to do so past that date.
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