DWAC Stock Falls As Digital World Fires CEO; Trump Grand Jury Delayed
The company's CEO has been replaced as Trump's legal challenges come to a head.
Digital World Acquisition (DWAC), a company that was poised to merge into the media company of former President Donald Trump, announced Wednesday that it had fired Patrick Orlando, its chief executive. This comes at a crucial juncture for Trump's legal problems. DWAC stock fell.
"Due to unprecedented headwinds facing the Company, the Board decided it was in its best interest to select a new leadership team to execute an ordered succession plan and establish strategic operating procedures," DWAC stated in a press release.
Digital World announced that Eric Swider (a member of the board since DWAC IPO) has been named interim chief executive.
The Manhattan grand jury, which was expected to discuss Trump's possible indictment, did not meet on Wednesday. The grand jury usually meets on Mondays, Wednesdays, and Thursdays. The New York Times reported, citing unnamed sources, that the Wednesday meeting would not take place.
It was not clear if the Thursday meeting would be held.
Trump could be indicted for allegedly paying Stormy Daniels "hush money". Trump allegedly paid Daniels for her to conceal her story about an affair with Trump in 2016. Daniels' claims were denied by the former president.
Digital World shares fell 3.7% to 13.13 today on the stock exchange.
The stock of DWAC is now down 93% from its high in October 2021 at 175. This was just after the Trump merger news broke.
Digital World shares fell after Trump announced that he would seek the Republican nomination for president in 2024. DWAC stock rose to 70% in November, despite Trump's announcement of his presidential bid. On Monday, shares rose 11% amid an increase in trading volume of 4.2 million shares.
DWAC-Trump Media Deal
Trump Media & Technology Group announced a merger with DWAC in October 2021. This was a reverse merger. Trump Media is the parent company of conservative social-media platform Truth Social. This site is Trump's main online channel. It was created after Twitter closed Trump's account in the wake of the Jan. 6, 2021 riot at the U.S. Capitol.
Trump's 2024 presidential campaign was widely viewed as increasing the stock market value of Truth Social or DWAC. It is unclear what the indictment would have on the potential merger of the two companies.