Politics

Donald Trump’s social media company announces $1 billion in pre-launch investments

Former United States President Donald Trump’s new social media company announced on Saturday that it had entered into agreements to raise about $1 billion from a group of unidentified investors as it prepares to float in the U.S. stock market.

In October, Trump launched new company, Trump Media & Technology Group. The former president looks to come up with a new messaging app called ‘Truth Social’ to rival Twitter and the other social media platforms that removed his accounts.

The deal, which sources first told Reuters was in progress earlier this week will provide estimated proceeds of $1.25 billion to TRUTH Social, according to a press release. While the identity of the investors remains unknown, the funding will function as “PIPE” investments, or private investments in public equity.

Trump said in a statement on Saturday that the investment will put his company “in a stronger position to fight back against the tyranny of Big Tech.”

“$1 billion sends an important message to Big Tech that censorship and political discrimination must end,” Trump said in a statement. “America is ready for TRUTH Social, a platform that will not discriminate on the basis of political ideology.” 

The $1 billion will be raised through private investment in public equity (PIPE) transaction from “a diverse group of institutional investors,” Trump Media and Digital World said in a statement. They did not respond to requests to name the investors.

Trump Media signed a deal with the Digital World to go public in October at a valuation of $875 million, including debt. The social media venture is now valued at almost $4 billion based on the price of Digital World shares at the end of trading on Friday. 

Trump had 89 million followers on Twitter, 33 million on Facebook and 24.5 million on Instagram at the time he was blocked, according to a presentation on his company’s website.

ARTICLE: PAUL MURDOCH 

MANAGING EDITOR: CARSON CHOATE

PHOTO CREDITS: WASHINGTON TIMES

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Paul, 37, is from Scotland in the UK, but currently lives and works in Bangkok. Paul has worked in different industries such as telemarketing, retail, hospitality, farming, insurance, and teaching, where he works now. He teaches at an all-girls High School in Bangkok. “It’s a lot of work, but I love my job.” Paul has an active interest in politics. His reason for writing for FBA is to offer people the facts and allow them to make up their own minds. Whilst he believes opinion columns have their place, it is also important that people can have accurate news with no bias.

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