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Trump’s social media venture to raise about $1 billion in funds

U.S. President Donald Trump participates in the first presidential debate against Democratic presidential nominee Joe Biden at the Health Education Campus of Case Western Reserve University on September 29, 2020 in Cleveland, Ohio.

Win McNamee | Getty Images

Former President Donald Trump’s new social media venture, Trump Media & Technology Group, and Digital World Acquisition said they have entered into subscription agreements to raise about $1 billion from a group of investors.

DWAC said it will provide up to $293 million to the partnership with Trump’s media venture, taking the total proceeds to about $1.25 billion. Trump Media and Digital World did not respond to requests for comment on the identities of the investors behind the $1 billion raise.

Reuters had exclusively reported on Wednesday that the social media venture was seeking to raise up to $1 billion by selling shares to hedge funds and family offices.

Last week, the new social media company appeared to have missed its own November deadline to launch an invitation-only beta version of “Truth Social,” its purported alternative to Twitter.

While major Wall Street institutions are largely staying away from the investment over reputation concerns, some hedge funds, family offices and high net worth individuals had been expected to participate, sources told Reuters.

A full 8K filing with the SEC is expected to be filed on Monday with more details of the transactions, one source added.

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