Former president Donald Trump’s media venture, Truth Social, could give his new company access to $300 million.
However, some of the investors who funded the venture weren’t aware that Trump would be involved, according to a report from the New York Times.
“The details of Mr. Trump’s latest partnership were vague,” the Times reports. “The statement he issued was reminiscent of the kind of claims he made about his business dealings in New York as a real estate developer. It was replete with high-dollar amounts and superlatives that could not be verified.”
Trump’s partner in the deal is Digital World Acquisition, which is a “special purpose acquisition company,” or SPAC.
“These so-called blank-check companies are an increasingly popular type of investment vehicle that sells shares to the public with the intention of using the proceeds to buy private businesses,” the Times reports. “At the time that investors bought shares in Digital World, it had not disclosed what, if any, companies it planned to acquire. On its website, Digital World said that its goal was “to focus on combining with a leading tech company.” At least one of the investors, Saba Capital Management, did not know at the time of the initial public offering that Digital World would be doing a transaction with Mr. Trump, according to a person familiar with the matter.”