There’s trouble at Digital World Acquisition Corp. (NASDAQ:DWAC) today. Former President Trump expects to make a return to major social media outlets. With Trump’s social media and related app poised to go public through Digital World, does it suggest an Elon Musk-style distraction ahead?
DWAC trading has been erratic for the last five days. On Friday, the stock started an upward spike that lasted for two days before reversing and trending closer to the norm. That led up to today when the stock hit another pocket of turbulence that sent it down a little further.
At last report, Trump was busy petitioning both Facebook (NASDAQ:META) and Twitter for a return to their platforms. While Trump back on Twitter doesn’t seem like it will be a problem, given the recent changing of the guard seen therein, a return to Facebook may be a much different story. For its part, Meta noted that it “…will announce a decision in the coming weeks in line with the process we laid out” to determine if Trump can return.
Originally, Trump was removed from Facebook two years ago in the wake of the January 6 riots. Trump’s campaign, meanwhile, responded that the move “…has dramatically distorted and inhibited the public discourse.” Meta appeared to agree with this somewhat; back in May 2021, Facebook’s Oversight Board upheld a ban against Trump.
However, the board noted that the ban needed a definite ending. Ultimately, Facebook revealed that Trump could return on January 7, 2023. That permission was on a conditional basis, and it apparently fell through, as Trump is still petitioning for a return, yet it’s January 18.