'Corruption at its finest': Truth Social merger stuns experts and Trump pundits
Predictions about the future of former President Donald Trump's presidential campaign, civil court litigation and financial standing were thrown into disarray Friday when news broke that his social media company had agreed to a merger that could net him $3 billion.
Trump, the Republican frontrunner trailing behind President Joe Biden in campaign fundraising and facing a looming $464 million deadline in his New York civil fraud trial, has reportedly been toying with the idea of declaring bankruptcy to avert financial disaster.
But now that Digital World Acquisition Corporation has voted in favor of a merger with the Trump Media, the parent company of Truth Social, predictions of disaster have been replaced with phrases that include "corruption," "messed up" and "fiddlesticks."
Trump critic Ed Krassenstein, dubbed by Rolling Stone as one of "Trump’s Cringiest Reply Guys," was quick to respond to the news, arguing the merger paved a pathway to corruption should Trump return to the White House in 2025.
"Foreign governments would buy and sell the stock in order to try and get favors from Trump or even to try and get retribution with Trump," wrote Krassenstein. "This would be corruption at its finest for any president, but for some reason Republicans don’t care."
White-collar criminal defense lawyer Robert DeNault offered an equally grim but less financially optimistic prediction for the future of the publicly traded stocks.
"Hot take," wrote DeNault. "The [Special purpose acquisition companies] merger between Digital World and Trump Media/Truth Social is vastly overvalued and the stock price will plummet in short order."
Economist, journalist and Yale University fellow James S. Henry had one word to describe his reaction: "Fiddlesticks."
Henry pointed the finger at the Securities Exchange Commission's decision to approve the $3 billion merger in February considering the owner of Truth Social has been found liable for sexual assault, defamation and fraud.
"Thanks for moving so quickly on this, SEC," wrote Henry. "Yet another triumph for 'free markets' and 'the rule of law as the foundation of democracy.'"
CNN legal analyst Jeffrey Evan Gold admitted he was not surprised, but suggested should Trump cash out on his claim, it could prove a death knell for the company.
"As expected they approved the merger of Truth Social and public offering which should make a bundle for Trump," wrote Gold. "The question is will he have to wait 6 months or will they also approve his ability to sell early (and perhaps kill the baby and it's cradle?)"
CNN legal analyst Shan Wu took to the airwaves Friday to temper the optimism that the Truth Social merger would provide a bandaid solution to Trump's financial problems, the largest among them a $464 million civil fraud trial ruling due Monday.
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Trump, despite boasting he has almost $500 million cash at hand, had not, as of Friday, been able to secure a bond to cover the payment.
Wu noted that while the merger comes at an opportune moment, it also arrives with serious strings attached, namely several outstanding lawsuits accusing Trump Media of scheming to lock its co-founders out of stock options.
"He was probably counting on that timing," said Wu. "That's actually been kinda messed up for him because now there are some lawsuits pending among the investors, the partners originally. And those suits would actually stop them from be able to take the money he is anticipating on taking out of that deal."
But when host Jim Acosta asked Wu if the merger could get Trump out of his financial "jam," Wu replied, "It definitely could."