Inside the “weird” world of DWAC, Trump’s already soaring social media SPAC | Salon.com

US President Donald Trump arrives for a campaign rally at Pittsburgh International Airport in Moon Township, Pennsylvania on September 22, 2020. (MANDEL NGAN/AFP via Getty Images)

To be precise Trump has done Nothing and Wall St Wolves have done everything. The numbers he cited $1.7 billion are huge for a company without any apparent cash flow. Like ” a lot of things that happen with Trump are not great with details and formalities, it’s perhaps not surprising.” However it’s not the norm in SPACs.”

 Classic Scam Warning

For many investors, it apparently doesn’t matter that former President Donald Trump’s new media venture has yet to create, well, anything.

DWAC is what’s known as a “SPAC,” or special purpose acquisition company. The strategy, which has become popular in recent years as a way to sidestep the typically onerous regulatory process of taking a company public, typically occurs when a non-public company merges with a shell company that is already public. In this case, DWAC is set to merge with “Trump Media & Tec

It’s also important to note that a key feature of SPAC deals are the unique incentives that protect company insiders while other investors bear much of the risk if a deal fails to garner expected returns.

Trump’s last publicly traded venture, a casino company called Trump Entertainment Resorts, also ended in heartbreak for investors after it lost hundreds of millions of dollars in just over a decade, a period during which it filed for bankruptcy numerous times. Though if the past is any indication, Trump will likely come out on top — Fortune Magazine reported at the time that he earned more than $82 million from the company before it went bust.

Source: Inside the “weird” world of DWAC, Trump’s already soaring social media SPAC | Salon.com

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