SPAC Digital World Acquisition Corp's stock market success eventually caught the attention of US regulators.
This inactive company is soon to merge with the Trump Media & Technology group (TMTG) to allow it to be quickly listed on the Nasdaq.
Since the announcement of this marriage, the enthusiasm of investors has been tangible.
The company valued at $ 8 billion had for example seen its share price soar (740%) in the days following its revelation.
The entity will be the parent company
of Donald Trump's
“
Truth Social
”
network
, promised to the general public in the first quarter of next year.
Read also Donald Trump launches his social network called Truth Social
Two US regulators have requested information from the SPAC. The Security and Exchange Commission (SEC), which oversees the financial markets, seeks details of board meetings, its brokerage-related procedures, the identities of certain investors, and dealings with Donald's company Trump.
For its part, the Financial Industry Regulatory Authority (Finra), which regulates the financial sector, studies the large variations in price at the end of October and the beginning of November.
La Finra told DWAC that "
this
investigation should not be interpreted as an indication
" that federal laws or Nasdaq rules have been violated.
When these investigations were announced, on the morning of December 7, the value of the shares fell 6% to $ 8.40.
Read also Trump's social network fascinates Wall Street
Republican Devin Nunes appointed CEO
Hours after these inquiries were made public, Republican MP Devin Nunes announced he was stepping down from his elected post in Congress. He was chosen to lead the Trump Media & Technology Group as CEO. The politician will take office at the start of the year. The CNBC channel humorously tackles a man who “
prides himself on being a cow breeder
” and will start a new career “
without any previous experience in the technology sector or as a manager
”.
The choice of the leader is one of the few pieces of information known about Donald Trump's company.
So far, the elements surrounding the economic model of services remain very rare.
We know, for example, that the TMTG + streaming service offer will operate on subscription or that the social network will contain advertising.
A fundraising campaign in early December raised a billion dollars.
If the list of investors remains secret, according to Reuters, they are hedge funds, wealth managers (Family offices) and high net worth individuals with an entry ticket of $ 10 million.