The stock market conundrum surrounding Donald Trump's new media venture

Presentation of the TRUTH Social platform of Donald Trump, on October 20 in Los Angeles.CHRIS DELMAS (AFP)

From the long list of

that he has left this year,

Digital World Acquisition Corp's could take the cake, analysts say. The stock market bell that this SPAC gave after reaching an agreement with the new media company of former President Donald Trump will be recorded in the annals as the maximum exponent of an exercise in which "meme shares" - an action that is gaining popularity among retail investors through social media platforms - they have become fashionable. Before Digital World, the AMC cinema chain, or the GameStop video game store, hit the wall on Wall Street, but Digital World's association with Trump promises to bring more surprises: the mix of finances, ideology,Profitability and spurious interests - those of those who invest in the media platform of the probable candidate for reelection in 2024 - is so explosive that it is under the spotlight of suspicion.

Trump keeps making noise, a lot of noise. The alternate reality that he coined during his turbulent tenure is now taking shape in Trump Media & Technology Group (TMTG), which will serve as his loudspeaker after being silenced on Google, Facebook and Twitter for encouraging the assault on the Capitol on January 6. The new business, or pulpit, of the magnate, is the eye of a political and stock market hurricane due to its characteristics, the identity of the investors and, above all, due to the investigation opened by Wall Street regulators to Digital World, a SPAC or a "blank check" company, as they are called in the US, which sells shares to the public and is already operating on Nasdaq, and with which Trump has partnered to go public. The Securities and Exchange Commission (SEC)federal regulatory agency) investigates the details of the negotiation between the SPAC and TMTG.

The share price of Digital World soared 1,657% after the announcement of the merger, breaking records that no one, not even analysts, can explain.

Despite the red flags, the buzz among investors has led to an implied valuation of $ 10 billion for the company, according to Renaissance Capital.

In addition, it has raised a billion dollars for Trump Media, no one knows from whom or from where.

Too much dust even for controversial Trump.

In a forward flight that is a house brand, TMTG last week announced an agreement with Canadian Rumble for it to provide video and

services to TRUTH Social (VERDAD Social), Trump's new social network and main

by TMTG. "As part of our mission [sic], Trump Media continues to align itself with service providers that do not discriminate based on political ideology," the Republican, president of the firm, explained in a statement. "America is ready for TRUTH Social and to end the culture of cancellation," he added. "Rumble was designed to be immune to the culture of cancellation," explained the Canadian firm, which proposes "a free, open and neutral internet" while aligning itself with conspicuous ultras like Dan Bongino, a former member of the secret services turned into tribune of the conservative chain FOX.

Matthew Tuttle of Tuttle Capital Management underscores the murkiness surrounding the Trump Media-SPAC deal. “It's been a wild ride since the announcement, going from $ 10 a share to $ 175, [even] now going up to about 50. It's crazy that a SPAC, which has a ceiling of $ 10 a share, is trading so high, especially when the underlying melt is so cloudy. But the fact of being linked to Donald Trump makes this the most memorable meme of all the

, so anything is possible, "explains Tuttle by email, recalling the precedents of AMC and GameStop at the beginning of the year, and that the case of Digital World would multiply by a million, he stresses.

"You have to consider all this as a stake [in the game], because it is what it is," sources from Renaissance Capital, who have not responded to a request for comment from this newspaper, told CNN. “It seems that much of the assessment [of Digital World] is based on hype and personal popularity of Donald Trump. That is not a solid justification for the investment, ”they add.

One of the characteristics of the Trump-SPAC agreement is the scant information published on the basis of the business. And the ones that have been made public raise more questions than answers. Also the election as CEO of former Republican Congressman Devin Nunes, who lacks business experience in the technology and media sector beyond running his farm in California. Nunes is a loyal Trump acolyte and opposed certifying Joe Biden's electoral victory.

Because reasonable doubts go beyond the financial stage to reach politics: specifically, the potential use of TMTG in a hypothetical campaign for reelection. “Trump Media is not a campaign vehicle. In fact, as a Delaware-incorporated for-profit company, it is obligated to serve shareholders, ”recalls John Foley of Reuters's Breaking views service in his analysis. "Channeling investments in a listed company that can facilitate and participate in the political debate, and in which Trump acts as president and director of the company, could be a leap forward."

TMTG's business forecasts are by no means modest, despite all the doubts raised.

It expects to reach an audience of 81 million users in 2026 and an average revenue of $ 13.50 per customer.

TMTG +, the

platform

, expects to have 40 million users in 2025, with a monthly fee of nine dollars, similar to that of popular platforms such as Netflix.

"TMTG aspires to create a media powerhouse that will rival the liberal media consortium and fight the Big Tech companies of Silicon Valley, which have used their unilateral power to silence opposing voices in the United States," TMTG said in its presentation.

Finance, ideology, business or politics, what is really at stake?

For now, judging by the tangle of information in this regard, there seems to be no solution to the enigma.

Subscribe here to the

EL PAÍS América

and receive all the informational keys of the current situation in the region