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US regulators probing Trump’s social media merger deal

In this January 6, 2021, file photo, US president Donald Trump speaks during a rally protesting the electoral college certification of Joe Biden as president in Washington. (AP Photo/Evan Vucci, File)
In this January 6, 2021, file photo, US president Donald Trump speaks during a rally protesting the electoral college certification of Joe Biden as president in Washington. (AP Photo/Evan Vucci, File)

US regulators are scrutinizing a deal between Donald Trump’s fledgling social media company and an investment vehicle to bring the former president’s venture to the stock market, documents show.

The companies, once merged, say they plan to launch the social media platform “TRUTH Social” nationally early next year, hoping to rival services like Twitter, which banned Trump over the January US Capitol riot.

Digital World Acquisition Corp (DWAC), which is partnering with Trump, reports in a filing to US markets watchdog the Securities and Exchange Commission that it received “preliminary, fact-finding inquiries from regulatory authorities, with which it is cooperating.”

Digital World, already listed on Wall Street, announced in late October it would merge with Trump Media & Technology Group (TMTG), allowing the ex-president’s venture to be listed without the usual procedures.

In a joint statement, the two companies announced on Saturday that a group of institutional investors had committed to contributing $1 billion to the transaction. They did not specify in the regulatory document the identity of these investors.

Digital World says the SEC is seeking details of its board meetings, brokerage procedures, the identity of certain investors and dealings with Trump’s company.

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