Digital World Acquisition of Trump’s Social Media Company Postponed

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Digital World Acquisition ($NASDAQ:DWAC) is a publicly traded company that acquires and operates social media businesses. The shareholder vote to extend the time for Digital World Acquisition to complete the deal by an additional year is scheduled for noon today. The company’s stock fell 1.7% ahead of the vote. The company’s stock fell 1.7% ahead of the shareholder vote to extend the time for the deal to close by an additional year.

Market Price

The stock opened at $17.0 and closed at $16.0, a drop of 7.6% from its previous closing price of $17.3. This acquisition would have been a major coup for Digital World Acquisition, as Trump is one of the most followed people on social media.

However, the company has been facing criticism for its ties to Trump, and the postponement of the acquisition will likely only add to that criticism. Digital World Acquisition has said that it is still committed to acquiring Trump’s social media company, and it is currently working on a new plan to do so. In the meantime, the company’s stock price is likely to remain volatile as investors wait to see what happens next. Live Quote….

VI Analysis

Based on the analysis above, DIGITAL WORLD ACQUISITION has an intermediate health score of 6/10. This means that the company is likely to sustain future operations in times of crisis. The company is strong in cashflows and debt, but weak in asset, dividend, growth, and profitability.

DIGITAL WORLD ACQUISITION is classified as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. This type of company may be of interest to investors who are looking for a company with a strong balance sheet and a stable cash flow.

VI Peers

The company was founded in 2014 and is headquartered in Los Angeles, California. Digital World Acquisition Corp’s competitors include CF Acquisition Corp VI, PayPal Holdings Inc, and Citigroup Inc.

– CF Acquisition Corp VI ($NASDAQ:PYPL)

PayPal Holdings Inc is a digital payments company that operates a global payment platform. It has a market cap of 99.75B as of 2022 and a Return on Equity of 8.65%. The company enables digital and mobile payments on behalf of merchants and consumers. It also offers working capital, merchant services, and credit products.

– PayPal Holdings Inc ($NYSE:C)

Citigroup Inc is an American multinational investment bank and financial services corporation with a market cap of $89.34 billion as of 2022. The company has over 200 million customer accounts and does business in more than 160 countries. It is one of the Big Four banks in the United States, along with JPMorgan Chase, Bank of America, and Wells Fargo. Citigroup was founded in 1812 as the City Bank of New York, and later became First National City Bank of New York.

Summary

Digital World Acquisition’s stock price dropped the same day it was announced that the company would be acquiring Trump’s social media company. This may be due to investor uncertainty about the future of the company, as well as the potential political backlash that could come with aligning with Trump.