“Material Disruptive Event” For Digital World Shares Now Delayed as Trump’s Possible Indictment on Paying $130,000 in Hush Money to the Adult-film Actress Stormy Daniels Gets Pushed to April
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Akin to a crippled ship caught within the swirling currents of a maelstrom, Digital World shares have been staring at near-certain catastrophe, buffeted by the growing travails of former US President Trump. However, the horizon does appear to be clearing for Trump, at least where one high-profile indictment is concerned.
The Trump Media and Technology Group (TMTG), which aims to become the go-to media source for the conservative-leaning audience and encapsulated by Truth Social – a Twitter-like social media platform – as well as an upcoming "non-woke" video-on-demand service plus additional cloud-based products, is slated to merge with the SPAC Digital World. The merger will furnish TMTG with badly-needed cash proceeds, including $293 million that Digital World raised in its IPO, plus hundreds of millions of dollars in additional PIPE investments. However, this planned merger has been complicated by an ever-growing number of federal investigations related to violations of securities law and money laundering.
Against this morose backdrop, Digital World shareholders have had to contend with another legal headache, this time concerning the beating heart of the investment thesis surrounding Digital World and TMTG, namely, Trump himself.
The Manhattan District Attorney formed a grand jury in January 2023 following his investigation of Trump for allegedly paying $130,000 in hush money to the adult-film actress Stormy Daniels. This payment was reportedly routed via Trump's personal attorney Michael Cohen. The payment was intended to purchase Daniels' silence vis-à-vis a sexual altercation with
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