Billionaire Elon Musk’s deal to buy Twitter has sparked a stock sell-off for one of the platform’s potential rivals – former President Donald Trump’s nascent Truth Social network.
Shares in Digital World Acquisition Corp, the SPAC, which plans to take Truth Social public if it can get regulatory approval, fell 13% late Monday afternoon when Twitter’s board of directors announced it was accepting Musk’s bid to would consider buying the company for $54.20 per share.
The stock is down nearly 50% over the past month and nearly 40% since April 4, the day Musk first announced he’d acquired a stake in Twitter.
Musk has pledged to keep Twitter private and revise company policies with a focus on protecting free speech. That could spell trouble for Truth Social and other competing platforms, which launched as an alternative to Twitter after the company’s former leadership was accused of censoring conservative voices.
“Freedom of expression is the foundation of a functioning democracy, and Twitter is the digital marketplace where important issues for the future of humanity are debated,” Musk said in a press release after announcing the deal.
Trump had one of Twitter’s most popular accounts — with nearly 90 million followers — until he was banned from the platform and other prominent social media platforms following the Jan. 6 Capitol riot.
Some Trump supporters have urged Musk to restore the former president’s account. But Trump told Fox News that he has no intention of returning to Twitter even after Musk completes his acquisition of the company.
“I’m not going on Twitter, I’m going to stick to the truth,” he said. “I hope Elon buys Twitter because he will make improvements on it and he’s a good man, but I’m sticking to the truth.”
Trump’s comments echoed the stance he laid out in an interview with Siriux XM’s Americano Media earlier this month, when he said he “probably had no interest” in returning to Twitter.
“Twitter has become very boring. They got rid of a lot of good voices on Twitter, a lot of their conservative voices,” Trump said at the time.
But Truth Social was struggling even before Musk bought Twitter. The company’s technology and product development heads resigned earlier this month in unclear circumstances.
The social media app is also struggling with various technical issues – many users are stuck on a waiting list or unable to access the platform long after it launched on Apple’s App Store in February. Trump himself hardly used the app.
https://nypost.com/2022/04/25/trumps-truth-social-stock-hammered-as-elon-musk-cuts-twitter-deal/ Trump’s shares of Truth Social plummeted as Elon Musk cut Twitter deal