Today we cover $DWAC, $AAC, $SHPW, and more…
In what can only be described as a strange turn of events, Trump is taking on Big Tech… with a SPAC? Also, after a deal with Chamath Palihapitiya’s Social Capital fell through, Equinox is trying again with another SPAC. Read today’s Dish to find out about all things SPACs.
Donald Trump is taking TMTG public through a SPAC merger with Digital World Acquisition Corp at a $1.7 billion valuation.
Former President Donald Trump is taking on Apple, Amazon, Disney, Facebook, Google, Hulu, Microsoft, and Netflix through a new company called Trump Media and Technology Group (TMTG). TMTG’s first project will be a social media platform called ‘TRUTH Social’ which aims to ‘stand up to the tyranny of big tech’.
TMTG consists of Truth Social, TMTG+, TMTG News, and TMTG Tech stack. TRUTH Social will compete with Facebook and Twitter with an initial Beta Launch in November 2021 and a national rollout in the first quarter of 2022. Furthermore, TMTG+ will be a video-on-demand service featuring ‘non-woke’ content and TMTG News will take on ‘Mainstream Media’ platforms CNN and MSNBC. In the long run, TMTG also aims to compete with AWS, Google Cloud, Microsoft Azure, and Stripe.
DWAC will take TMTG public on Nasdaq, with an initial enterprise value of $875 million and an additional payout of $825 million based on the performance of the stock after the deal. The transaction is expected to infuse the company with $293 million in cash from the SPACs trust with no additional PIPE funding expected. There are a number of reasons for investors to be skeptical about the deal.
TMTG’s current offices are currently located in Downtown Miami with no known employees. Furthermore, CEO Francis Orlando and CFO Luis Orleans-Braganza bought $11 million in shares of DWAC a month prior to the announcement. To understand the skepticism around the deal, look at this thread for more information about the deal.
Equinox is in talks with SPAC Ares Acquisition Corp to go public after a deal with Social Capital Hedosophia Holdings Corp. VI fell through.
Luxury gym chain Equinox, is now in discussions with SPAC Ares Acquisition Corp for a potential merger after talks with Chamath Palihapitiya’s SPAC fell through in July. In addition to its gyms and digital platform, Equinox operates brands that include SoulCycle, Rumble, and Blink Fitness.
While the deal with Social Capital could have valued Equinox at $7.5 billion including debt, the merger was reportedly called off due to a disagreement in the valuation. In February 2020, Equinox struck a deal with private equity firm Silver Lake to build out its digital platform. Consumer-focused buyout firm L Catterton also owns a minority stake in the gym operator. Ares raised $1 billion in its IPO in February and is led by David Kaplan.
With a low free float and the stock getting an option chain, Shapeways stock jumped over 51% yesterday.
Wallbox and Navvy Holdings announced a vehicle-to-grid partnership in Iberia designed to reduce the mounting pressure on the grid and offer users significant financial incentives. The technology is expected to be available to consumers in early 2022 in Spain and Portugal and to follow in the US after.
Trump’s Opinion about TMTG Deal
SPAC Deals Approved
Shareholders of Alkuri Global Acquisition Corp. approved the $4.2 billion mergers with Artificial Intelligence healthcare startup Babylon Holdings. The deal is expected to close today with the stock ticker expected to change to ‘BBLN’ tomorrow.
Approximately 98% of the Shareholders (78% of outstanding shares) of Big Cypress Acquisition Corp present at a special meeting approved a merger with SAB Biotherapeutics. The deal is expected to close on October 22nd with the stock being listed on Nasdaq under the ticker ‘SABS’.