By Thornton McEnery
Shares of GameStop /zigman2/quotes/203755179/composite GME -2.34% , AMC Entertainment /zigman2/quotes/200235402/composite AMC +4.22% and BlackBerry /zigman2/quotes/202784246/composite BB +0.22% all fell on Thurs— … oh, who are we kidding?
Donald Trump announced that he has decided to upend Silicon Valley via a new app called TRUTH Social, which will be a property of his newly formed company, Trump Media & Technology Group, which has in turn agreed to go public via a SPAC merger with a company based out of a WeWork office in Miami, run by a CEO whom the SEC lists as doing business from Wuhan, China, and a CFO who is currently a congressman in Brazil.
Shares in that company, Digital World Acquisition Corp. /zigman2/quotes/229933747/composite DWAC +28.10% , closed up 356.8% on Thursday, at $45.50, and appeared on track for further gains early Friday.
These are all words that I just typed.
Much of the wild froth surrounding DWAC — which, according to Dow Jones data, just recorded the best first day of trading ever by a SPAC — can be attributed to retail investors who were more than thrilled to invest with the former president in this new venture.
In keeping with Trump’s trademark pitch voice of sonorous opacity, the pitch deck for TMTG is full of big promises, like creating “a rival to the liberal media consortium and [fighting] back against the ‘Big Tech’ companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America.”
In identifying those targets, Trump and team are hunting big, and pretty wide, with the pitch deck including corporate logos of Twitter /zigman2/quotes/203180645/composite TWTR +2.83% , Facebook /zigman2/quotes/205064656/composite FB +2.40% , Disney /zigman2/quotes/203410047/composite DIS +1.68% , Amazon /zigman2/quotes/210331248/composite AMZN -0.0037% , Apple /zigman2/quotes/202934861/composite AAPL +2.28% , Netflix /zigman2/quotes/202353025/composite NFLX +0.40% and Alphabet’s /zigman2/quotes/202490156/composite GOOGL +0.62% /zigman2/quotes/205453964/composite GOOG +0.46% Google.
One, quite literally faded, area of the pitch appears to indicate a “long-term opportunity” for TMTG to rival Amazon Web Services, Microsoft’s /zigman2/quotes/207732364/composite MSFT +0.01% Azure and Stripe.
How will TMTG do this? According to the pitch, it will be by presenting content to a portion of the American public that is apparently desperate for “non-woke entertainment,” but also by deploying an “inclusive ‘Big-Tent’ approach.”
In terms of what the financing will look like, well, that’s hard to say, considering the 22-page document touting a venture that is — thanks to the magic of SPACs — already being publicly traded before it’s even an actual thing, does not include a single piece of financial information.
Not comp revenue to other social startups or even a projection. Not a single piece of information on how the company will actually make, like, money.
In fact, the only concrete piece of financial data that TMTG and DWAC were willing to offer was in a press release announcing the merger agreement:
So, there’s that.
DWAC was the top trending ticker symbol across multiple platforms on Thursday, and the stock was the talk of Reddit, where boards became hotbeds for debate over whether the stock would plummet after its big rip and, of course, political debates over investing with Trump, who is still litigating with the U.S. government over sealing his communications from the White House on Jan. 6, the day of the Capitol insurrection.
But Trump wasn’t the only thing that New Yorkers have in the past sardonically tolerated that used a SPAC to go public on Thursday.
WeWork Inc. /zigman2/quotes/222085303/composite WE +2.34% finally made its debut more than two years after its own attempt to go public via an IPO that was long on personality and massive disruptive dreams and wildly short on actual money-making information.
It closed up 13.5%.