@girlusocrazy said:
Correct me if I'm wrong but the OP article says Digital World was going to invest $1B and now they have pulled $139M, so this means they'd still invest $861M?
It says other individuals may back out of the investment, dropping this number, but I'm not sure if getting almost $900M is a death spiral...
The second post article says Digital World (the investors) stock price is dropping due to not being able to close a deal with Troth Senshul.
It seems like investing in the social media company is viewed as favorable by the market.
But maybe I've misunderstood something?
The billion was merely a stated commitment, that funding is not secured. And with the merger in legal question and being halted by the SEC while they investigate, they may not be able to complete the merger at all - which is the major point.
Stock prices have dropped so much that DWA (the investment group) cannot secure a 65% shareholder vote.
In other words, all of the information and events together reveal that the deal is shady to begin with, and all of the numbers they threw out were smoke and mirrors. The only numbers that actually matter are the hard figures listed - like stock devaluation and known secured funding that is now withdrawn, etc.
Then remember they're being sued by their infrastructure vendor for not paying their bills (over $1.6m at last count), and they couldn't even get their copyright for the name Truth Social.
Basically, if anyone reads the articles in their entirety and walks away thinking "well geez, that ain't bad", then they're looking for a reason to disagree. There's literally nothing going good for the company / service. They haven't even been able to pay their monthly bills, less than $2m. That clearly is not a healthy company with sufficient funding and investment.
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