Donald Trump Bailed On His Media Company Just Before Subpoenas Hit - Ring of Fire

[Rhiannon12866]

According to new reports, Donald Trump abruptly left the board of his Trump Media & Technology Group just a few weeks before the company was hit with subpoenas. There's a chance that this was just coincidental timing for Trump, but there's also a chance that he read the writing on the wall with all of the investigations taking place into Digital World Acquisition. Ring of Fire's Farron Cousins explains what's going on.

[choie]

1. JFC, does he do ANYTHING that's not

immoral, unethical or criminal?

[ProudMNDemocrat]

2. Where does that leave the Cow?

I mean Devin Nunes. I bet he regrets leaving Congress to serve a man whose business interests fizzle as a rule.

[Rhiannon12866]

3. He is one abandoned bovine - because we know that's what TFG does...

[LetMyPeopleVote]

4. Donald Trump left the board of his social media company weeks before federal subpoenas

I have been following this story for a while. I never understood how this deal made any sense economically. Digital World Acquistion is a SPAC that nominally raised $1.3 billion but due to redemption rights that amount could go down to $290 million. Trump Media and Technology is a company that is owned by TFG that has a approximately $50,000 in assets on its balance sheet and no real revenue. If this merger had gone through, TFG would have access to between $290 million and $1.3 billion in assets to run a new media empire. TFG had hired Devin Nunes to run the company and NUnes gave up his house seat to go work for TFG.

SPACs are sketchy to start with and this one has a ton of fraud built into it. Both the SEC and the DOJ is subpoenaing both DWA and TMT. That and TFG resigning from the board is good sign that this deal is dead. Poor Devin Nunes is the only left at this company and that makes me smile

Link to tweet

https://www.cnbc.com/2022/07/07/trump-left-social-media-company-board-before-federal-subpoenas.html?utm_source=dlvr.it&utm_medium=twitter

Former President Donald Trump left the board of his social media company just weeks before it was issued subpoenas by the Securities and Exchange Commission and a federal grand jury in Manhattan, records show.

Trump, who had served as the chair of Trump Media and Technology Group, was one of six board members removed, according to a June 8 filing with the Florida Department of State’s Division of Corporations. His son Donald Trump Jr. also departed the board, along with Wes Moss, Kashyap Patel, Andrew Northwall and Scott Glabe.

The “Board of Directors” page on Trump Media’s website appeared blank as of Thursday afternoon......

The subpoenas appear to be related to a proposed merger between Trump Media and Technology and Digital World Acquisition Corp. DWAC disclosed the connection with a criminal probe Friday. A week prior, DWAC said the government investigations could delay or even prevent its merger with Trump’s newly formed company, which includes Truth Social, a social media app intended to be an alternative to Twitter.

The Justice Department and the SEC, which regulates the stock market, are investigating the deal between DWAC and Trump Media. By merging with DWAC, which is a kind of shell company called a special purpose acquisition company, or SPAC, Trump’s firm would gain access to potentially billions of dollars on public equities markets.

[Rhiannon12866]

5. Wow! Thanks for the wealth of information, a lot to take in, more that Farron Cousins covered

But we always knew that TFG was never a "businessman," everything he started failed badly - Trump steaks, Trump vodka and the infamous Trump University. He couldn't even make his casinos turn a profit despite the millions that his father donated to try and bail him out. The only reason he had a reputation for being wealthy was because of his successful father - he even tried to disinherit his siblings because he was so desperate for money, until his mother found out.

[LetMyPeopleVote]

6. This makes me smile

Link to tweet

[Rhiannon12866]

7. Yikes! I hadn't heard of some of these! But they did forget the casinos!

[LetMyPeopleVote]

8. The goal in writing risk factors is to list everything that could cause deal to fail

I was working on a public offering for a NBA team (this was back before they shanged the rules on master limited partnerships) and an idiot stockbroker in the town did a press conference on this offering which is a no-no. The SEC put the offering on hold for six months and when we restarted the deal the investment banker who was heading the deal had changed firms and the investment bankers' attorneys were not supervised. That deal ended up with 120+ risk factors which killed the deal

[Rhiannon12866]

9. Thanks for the background and this certainly makes sense

However, in this case they really need to know one "risk factor" and that's TFG! I still believe he only ran for POTUS because everything else he tried failed - and he didn't want or intend to do the job, he only wanted the campaign contributions - and still does!