Donald Trump Stays At DWAC As Ron DeSantis Announces Challenge On Twitter

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Former President Donald Trump appears to be sticking with Truth Social as Florida Gov. reportedly prepares. Ron DeSantis to announce a presidential bid on rival Twitter on Wednesday. The stock of Digital World Acquisition (DWAC), the special purpose acquisition company seeking to take Trump’s tech and social-media platform public, fell on Wednesday morning.

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DeSantis is expected to announce his presidential run, challenging Trump in the Republican primary, Wednesday in a discussion with Elon Musk, owner and chief executive of Twitter, according to news reports. Musk, who is also the CEO of Tesla ( TSLA ), said Tuesday that he would interview DeSantis on Wednesday, promising “a big announcement.”

Trump in the past 18 hours took to Truth Social to criticize DeSantis, calling him “disloyal” and saying the Florida governor only won his 2018 primary because of Trump’s support.

“He is in dire need of a personality transplant and, to the best of my knowledge, they are not yet medically available. A dishonest man!” Trump wrote Wednesday morning on Truth Social.

DWAC stock was down 0.7% to 13.43 Wednesday during market action. The stock rose 2.7% in May. DWAC stock is down 28% since its January high of 18.77.

DWAC plans to take Trump Media and Technology Group (TMTG) public in the type of reverse merger that was popular a few years ago. Trump Media is the parent of the conservative social-media platform Truth Social.

DWAC Stock Competition

Elon Musk reinstated the former president’s Twitter account in late November, shortly after taking control of the company. However, Trump said he would stay with Truth Social and not rejoin Twitter. Trump’s Truth Social posts are usually quickly reposted on Twitter by his followers. Trump is back on Facebook after more than two years of suspension.

Meta (META) restored Trump’s Facebook and Instagram accounts on Feb. 9. Alphabet’s (GOOG) YouTube also announced that he was allowed back on the platform.

Truth Social does not report numbers for Trump followers. Statista gave the number of 4.83 million Trump followers on Truth Social In January. It noted Trump’s 34.49 million followers on Facebook, and 87.7 million on Twitter.

Even though DeSantis appears set to use Twitter to announce his 2024 ambitions, Trump appears set to stick with Truth Social. If Trump uses his Twitter account, it could have a big impact on DWAC shares.

DWAC And The Donald Trump Brand

DWAC stock is strongly tied to the value of the Donald Trump brand and Trump’s current status as the leading Republican candidate for president. However, that status could change with DeSantis running.

“If President Trump is less popular or there are additional controversies that damage his credibility or people’s desire to use a platform associated with him, and from which he can get financial benefit, the results of TMTG’s operation (Trump Media and Technology Group), as well as the outcome of the proposed business combination, could be adversely affected,” DWAC wrote in a federal filing on Aug. 2o22.

Truth Social was launched after Twitter shut down Trump’s account following the January 6, 2021 riot at the US Capitol. Some industry observers believe that a return to Twitter could redirect a large portion of Truth Social’s audience to a more mainstream channel.

DWAC stock is down about 92% since the October 22, 2021, high of 175, marked just after news of the Trump merger deal broke.

DWAC stock fell after Donald Trump officially announced that he will again seek the Republican nomination as the presidential candidate in 2024. This is a turnaround after DWAC stock rose about 70% in early November on the news that close that is Trump’s presidential bid.

Please follow Kit Norton on Twitter @KitNorton for more coverage.

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