Digital World Acquisition Surges as DeSantis Ends Presidential Bid

Shares of Digital World Acquisition (DWAC), the blank-check firm set to take Donald Trump’s social media platform public, surged to their highest level in 19 months. 

The stock jumped 55% to $41, reaching its highest point since June 2022, following Florida Governor Ron DeSantis ending his 2024 presidential bid and endorsing Trump.

DeSantis’ Decision Boosts DWAC and Related Stocks:

Digital World’s stock has more than doubled in the past five trading sessions as former President Trump gains momentum in his bid to become the Republican candidate for the 2024 general election. 

DeSantis’ endorsement further fueled the optimism, reflecting positively on DWAC and related stocks.

Shares of video-sharing platform Rumble, popular among conservatives, jumped 33% to $4.77 after announcing a partnership with media firm Barstool Sports. Software developer Phunware, previously involved in Trump’s 2020 re-election campaign, surged 40% to 36 cents.

Digital World’s Merger with Trump Media & Technology Group:

Digital World Acquisition, the SPAC merging with Trump Media & Technology Group (TMTG), parent of Trump’s social media platform Truth Social, has faced delays since the merger announcement in October 2021. Despite the delays, Digital World expects to complete the merger in the first quarter.

After Monday’s surges, Digital World Acquisition is valued at $1.5 billion, Rumble at $1.3 billion, and Phunware at $121 million. These valuations reflect the recent market enthusiasm surrounding Trump-related ventures.

Trump’s Social Media Presence:

Donald Trump, banned by Twitter following the Capitol attack on January 6, 2021, had vowed to exclusively use Truth Social. 

However, he returned to X.com, formerly Twitter, in August 2021 after Elon Musk, the new owner, reversed the ban.