Trump's social media company collapses in price after Kanye West's Parler move: report
An investment vehicle linked to former President Trump's social media startup has soared the last two days on Wall Street (AFP/Chris DELMAS)

According to Forbes, Monday's announcement that pro-Trump rapper Kanye West, also known as Ye, is acquiring the right-wing social media platform Parler sent the share price tumbling for the "blank check" company in charge of former President Donald Trump's own Twitter alternative.

"Shares of Digital World Acquisition Corp. (DWAC), the special purpose acquisition company with turbulent plans to merge with Truth Social’s parent Trump Media and Technology Group, fell 8% to $16.11 Monday as a new brash billionaire threw his hat into the conservative social media ring," reported Derek Saul. "West, who was booted from Instagram and Twitter last week after a rash of antisemitic comments, confirmed to Bloomberg his decision to buy Parler directly followed the bans, saying he 'knew it was time to acquire my own platform' and 'enough was enough.'"

"West was diagnosed with bipolar disorder in 2016 and has made numerous incendiary comments on social media in recent months," noted the report. "The 45-year-old threatened his estranged wife Kim Kardashian’s then-boyfriend Pete Davidson, and made several comments this month threatening violence toward Jews and reinforcing the stereotype of Jews holding a disproportionate amount of power."

West, who also befriended Trump in recent years and mounted an ill-fated third party run for president in 2020, stirred up outrage even from Trump's own allies with a tweet last week claiming he would go "death con 3" on Jewish people. Trump himself has privately said he worries West's behavior is too "crazy" and he should seek help.

"DWAC shares are down about 70% this year and previously slid as investors digested what Elon Musk’s pending Twitter takeover would mean for Truth Social’s popularity and as further questions arose about the likelihood of the DWAC-Truth Social merger," said the report. "Musk expressed his approval of West’s acquisition in a Monday afternoon tweet, sharing a photoshopped meme of him and West smiling and joining forces, writing, 'Fun times ahead!!'"

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This comes as Truth Social has faced a litany of financial and technical problems since its launch this year, and as DWAC faces delays in its planned merger and a fraud lawsuit from an investor.