Firm Taking TRUTH Social Public Discloses Federal Grand Jury Subpoena - TPM – Talking Points Memo

The blank check company set to acquire former President Trump’s social media venture said on Monday that each of the directors on its board had received subpoenas from a federal grand jury in Manhattan.


This is a companion discussion topic for the original entry at https://talkingpointsmemo.com/?p=1421637
1 Like

To begin with…
This will leave a mark…

Oh and FRIst!!!

41 Likes

Such an obvious pump-and-dump scheme. Guaranteed Trump sold off his free stock at the first available opportunity.

57 Likes

Unless TFG was one of the original investors in DWAC or bought shares in the open market, he doesn’t have any shares to sell. In either of those scenarios that would have to be disclosed, and may be prohibited under SEC rules. Regardless, his slice of this deal is receiving majority control of a company with over $1.2 billion in cash.

13 Likes

It would have been nice if the article defined what a “SPAC company” is. Yes, I found the definition of a “special purpose acquisition company” on the googles, but also what is the relevance of that detail to this story?

Josh Kovensky, you’re usually good about this stuff but don’t drop an undefined abbreviation into an article.

13 Likes

What good is it being a super rich a$$hole if you can’t fleece the rubes? It’s why they were put on earth.

22 Likes

Is there any way to find out whose money is behind this? US, or other countries’ oligarchs? {edit for spelling}

8 Likes

I’m hoping that if there were any Securities violations, and TFG committed them, that he gets sentenced to either 25 years in ADX Florence, or one year in an open cell in the Marianas Trench Holding Facility. [The second option is also the preferred one for Traitor Turtle, Cancun Cruz, Fascist Hawley, “Spine o’ Kelp” McQarthy, and the rest of them.]

11 Likes

ETTD -it happens.

7 Likes

Which one of the rabid hounds on TFG’s trail is gonna bite him first?

4 Likes

The grift only ends when they get to the head of the snake and do what needs to be done.

5 Likes

You mean, back when it still worth something…

4 Likes

My recollection is that he acquired DWAC stock at the time of the announcement, though I cannot find any support for that in anything readily accessible. The companies have not merged yet. And the whole thing is completely shady and opaque.

23 Likes

Jina.

ETA:

25 Likes

A SPAC is a company that goes public with no actual business venture, but the plan to buy other businesses. For a company to go public requires a lot of work and disclosures. For example, how many subscribers, how much revenue, etc, etc. Truth Social is a dud. This would have to be disclosed clearly. However, if a public company buys a private company, the public company does whatever due diligence it chooses. Thus, the SPAC was created to be a public company that would buy Truth Social, since the SPAC has no actual business, it can get through all the due diligence quickly and easily. Thus, Truth Social could, essentially, become a publicly traded company without going through a time-consuming IPO (which would require it to disclose things like subscribers, revenue and profits).

However, it’s illegal for a SPAC to have a plan to buy a specific company in advance, ie, for a SPAC to be used as a way around the due diligence and disclosure requirements of going public. This is a particular problem for Truth Social because it’s almost certainly worth nowhere near the price $875M that was, I believe, raised for the deal.

If the SPAC operated legally, it should be able to buy Truth Social for far less than the original deal, allowing the SPAC to buy other, more promising companies with the remainder of the money they raised.

37 Likes

It’s a lot of dogs nipping at his fat ass. It doesn’t particularly matter which one gets there first, since they’re all going to join in the feast when he goes down.

31 Likes

I think I know a bit of Trump’s history, but I’m wondering a couple of things. First, it seems like at this stage of what we’ll laughingly call his career he’s become more open about breaking the law. Second, I’m assuming that in most of the previous stages he was more discerning about doing stuff that was unethical but not criminal, or hiding what he did do that was criminal, or both. Of course I don’t know how correct these impressions are. But he really does seem to do things flagrantly now that he was more careful about in past years. Whether that’s true and if so, why, interest me.

19 Likes

The trick about the SPAC is that it’s already a publicly traded company before the PE investors get involved. The PE guys just buy a public company on the cheap so they don’t have to go through all of the going-public disclosures, then they do whatever the hell they want with it. The pirated company still has all the regular public reporting requirements, but those are rather less intrusive than the going-public requirements.

8 Likes

Well, if the “business practices” of that former guy also end up taking down DWAC (sounds like a comic book sound effect), where’s the harm?

2 Likes

And in this case they are literally begging to be shorn.

2 Likes
Comments are now Members-Only
Join the discussion Free options available