Trump Media Company in Federal Probe of SPAC Deal
2022.07.02 04:27
By Yasin Ebrahim
Investing.com — Donald Trump’s media company was subpoenaed by a federal grand jury earlier this week relating to a criminal probe, Digital World Acquisition Corp. said in an SEC filing Friday.
Digital World Acquisition (NASDAQ:DWAC) fell less than 1% in afterhours trading following the news.
The company said that Trump Media & Technology Group Corp received a subpoena from the grand jury in the Southern District of New York on Thursday.
The update comes just days after Trump’s media company on Monday received a subpoena from the Security and Exchange Commission seeking details related to the company’s combination with Digital World Acquisition.
Digital World Acquisition Corp and Trump Media and Technology Group announced last year that they would merge in a SPAC deal to create a new social media app called Truth Social.
The subpoenas, and the underlying investigations by the SEC and the U.S. Department of Justice, “can be expected to delay” the combination of Trump Media and Technology Group and Digital World Acquisition Corp, the latter said.
