Trump’s new venture in social media a huge hit

Shares in a company set to merge with Truth Social, the former president’s new social network, have risen 900 per cent since Wednesday.

A new investment vehicle linked to Donald Trump's fledgling social media venture surged in early trading. Picture AFP.

Donald Trump’s plan to build a media empire appears to have enjoyed a sensational debut, prompting debate about whether he could succeed in his aim to rival Twitter, Netflix and Google.

Shares in a company set to merge with Truth Social, the former president’s new social network, have risen 900 per cent since Wednesday, confounding critics who expected the enterprise to be a disaster.

It suggests that Mr Trump will not have trouble raising millions of dollars to fund a return to social media after being barred from mainstream platforms such as Facebook and Twitter.

He created Trump Media and Technology Group (TMTG), a media and technology company, in February, driving speculation that he wants to increase his ­national profile before next year’s mid-term elections and take revenge against Silicon Valley social media companies for “cancelling” him after his supporters’ attack on the US Capitol on January 6.

Shares in the little-known Wall Street shell company set to merge with Mr Trump’s new ­social media venture surged as private investors scrambled to get involved. Plans for Digital World Acquisition Corp to draw TMTG on to the stock market triggered a volatile trading frenzy on Friday. At one point, its shares were up more than 1500 per cent since Thursday’s announcement.

Mr Trump said that Truth ­Social would be the name of his new social network designed to challenge leading platforms ­including Facebook, Instagram and Twitter.

Its parent company, TMTG, hopes to raise $US293m ($392m) through listing in New York by combining with the publicly traded Digital World.

Traders flocked to the company amid hype on internet ­forums since Mr Trump unveiled its role. Its shares almost quadrupled to peak at $US172 during early Friday trading ­before dropping back to $115.99, up 900 per cent since Wednesday’s announcement.

The size of Trump’s stake in TMTG is unclear. He is not listed as a shareholder in Digital World. It is led by Patrick Orlando, a former trader now based in Florida.

Mr Trump, 75, launched a string of ventures designed to ­diversify beyond property in the years before he entered the White House. Few were successful.

The Times