With Elon Musk’s Twitter Bid, Short Sellers Eye SPAC Tied to Trump’s Truth Social

Wall Street traders are telling The New York Poat they can’t wait for the SEC to give the green light to Digital World Acquisition, the shell company holding former President Donald Trump’s new right-wing Twitter alternative, “Truth Social.”

And it’s not because they like the stock.

Traders are already eyeing the SPAC for the mother of all shorts, betting that shares will eventually fall to penny-stock levels ($5 or less). Part of the pessimism stems from Truth Social’s lousy rollout; it has been plagued by technological glitches and management upheaval since its February launch.

But the possible nail in the coffin for Truth Social is Tesla founder Elon Musk’s bid to take over Twitter. With a net worth of around $250 billion, Musk has agreed to plunk down $44 billion to purchase the financially troubled but influential micro-blogger, making a right-leaning Twitter­alternative like Truth Social largely obsolete. Read more.

Total
0
Shares
Related Posts
Read More

Exclusive: The International State of SPACs in 2023 and Beyond – An Interview with Corporate and Securities Attorney Doug Ellenoff

Ellenoff is bullish on U.S. SPACs, though cautiously so while the market remains in flux. Attractive targets in Europe and elsewhere should also continue to provide opportunities for SPACs, which Ellenoff sees as a critical component of healthy stock markets throughout the world. SPACs open doors that would otherwise be closed to many companies, he says. Done correctly, SPAC deals are lucrative for all parties involved.