Former President Donald Trump appears to be remaining on Truth Social as Florida Gov. Ron DeSantis reportedly prepares to announce a presidential bid on rival Twitter Wednesday. Digital World Acquisition stock, the special purpose acquisition company aiming to take Trump's tech and social-media platform public, edged lower Wednesday morning.
DeSantis is expected to announce his presidential run, challenging Trump in the Republican primary, Wednesday during a discussion with Elon Musk, owner and chief executive of Twitter, according to news reports. Musk, who is also the CEO of Tesla, said Tuesday he would interview DeSantis on Wednesday, promising "a major announcement."
Trump over the past 18 hours took to Truth Social to criticize DeSantis, calling him "disloyal" and claiming the Florida governor only won his 2018 primary because of Trump's support.
"He desperately needs a personality transplant and, to the best of my knowledge, they are not medically available yet. A disloyal person!" Trump wrote Wednesday morning on Truth Social.
DWAC stock dropped 0.7% to 13.43 Wednesday during market action. The stock is up 2.7% in May. DWAC stock is down 28% since a January high of 18.77.
DWAC plans to take Trump Media and Technology Group (TMTG) public in the sort of reverse merger that was popular several years ago. Trump Media is the parent of the conservative social-media platform Truth Social.
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Elon Musk reinstated the former president's Twitter account in late November, shortly after taking control of the company. However, Trump has said he will remain on Truth Social and not rejoin Twitter. Trump's Truth Social posts are generally quickly reposted to Twitter by his followers. Trump has also returned to Facebook after a more than two-year suspension.
Meta restored Trump's Facebook and Instagram accounts on Feb. 9. Alphabet's YouTube also announced he was allowed back on the platform.
Truth Social does not report numbers for Trump's followers. Statista gave a number of 4.83 million Trump followers on Truth Social As of January. It noted 34.49 million Trump followers on Facebook, and 87.7 million on Twitter.
Even as DeSantis looks set to use Twitter to announce his 2024 ambitions, Trump still appears set to stick with Truth Social. If Trump were to engage using his Twitter account, it could potentially have a severe impact on DWAC shares.
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DWAC And The Donald Trump Brand
DWAC stock is tightly bound up in the value of the Donald Trump brand and Trump's current status as the top Republican candidate for president. However, that status could change with DeSantis running.
"If President Trump becomes less popular or there are further controversies that damage his credibility or the desire of people to use a platform associated with him, and from which he will derive financial benefit, TMTG's (Trump Media and Technology Group) results of operations, as well as the outcome of the proposed business combination, could be adversely affected," DWAC wrote in an August 2o22 federal filing.
Truth Social launched after Twitter shut down Trump's account following the Jan. 6, 2021, riot at the U.S. Capitol. Some industry observers contend that a return to Twitter could redirect a large portion of Truth Social's audience to the more mainstream channel.
DWAC stock is down around 92% from its Oct. 22, 2021, high of 175, marked just after news of the Trump merger deal broke.
DWAC stock dropped after Donald Trump officially announced he would again seek the Republican nomination as presidential candidate in 2024. This was a turnaround after DWAC stock had surged around 70% in early November on news that Trump's presidential bid was imminent.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
