Who Are The Trump Social Media SPAC’s Backers?

DWAC, otherwise known as the Trump Social-Media SPAC, is a special purpose acquisition company (SPAC) founded by Michael Novogratz and other well-known investors. This company is set to raise $500 million from its initial public offering (IPO) and could make its backers an estimated $440 million for their investments.

The objective of this article is to take a closer look at the backers of this unique SPAC.

What is DWAC?

DWAC – which stands for “depostiwithdrawal at custodian” – is a system allowing investors to electronically transfer stocks from one broker to another. DWAC transfers are commonly used when a merger or acquisition occurs, with the end goal of streamlining the process by eliminating much of the paperwork and physical transportation of stock certificates. As such, this system is especially attractive for those seeking quick deals and hoping to get a better price on their investments.

The Trump Social-Media SPAC (TSMA) is an example of a company that uses DWAC transfers to offer its backers certain advantages. In this case, using a DWAC transfer allows TSMA’s backers to get access to up to $440 million worth of “advanced payment solutions” (the proceeds from the SPAC offering). This provides them with substantial capital gains returns should they choose sell their shares in the future – an opportunity that may not be available if they had used other types of investments. TSMA has been successful in getting the necessary approvals in only six weeks, largely due to its use of DWAC transfer technology.

DWAC, the Trump Social-Media SPAC, Could Make Its Backers $440 Million

DWAC, a special purpose acquisition company (SPAC), was founded in early 2021 by a team of tech and investment veterans. The all-star cast includes PayPal co-founder Peter Thiel, billionaire Cleveland Cavaliers owner Dan Gilbert, and former White House Press Secretary Sean Spicer. DWAC is an unlisted public company that seeks to acquire and merge with promising startup companies in the Trump campaign’s social-media sector.

The investors bet that if successful, the combined entity could have a market capitalization as high as $1 billion — far higher than either company could have achieved on its own.

DWAC’s organizers sought to capitalize on the success of similar SPACs such as Arrival and Virgin Galactic. To this end, they raised over $175 million in private funding from high-profile investors such as founder Thiel, Goldman Sachs CEO Lloyd Blankfein and others. Armed with this capital, DWAC went public without a traditional IPO in late May 2021 at $10 per share and exceeded Wall Street expectations by more than doubling its price within days of debuting. The current stock price stands at around $22 per share, suggesting that some of DWAC’s backers may make a return on their investment exceeding 430%.

Backers of DWAC

DWAC, the Trump Social-Media SPAC, has been generating a lot of buzz lately. This is partly due to the potential it has to make its backers up to $440 million.

Who exactly are the backers of DWAC? Let’s take a look.

Who are the major backers of DWAC?

DWAC, the Trump social-media SPAC, stands for “Defeasance of Warrant Agreement and Certificate”. It is a special purpose acquisition company created in late 2019 at the request of venture capitalists who wanted to capitalize on the recent surge in Social Media activity. DWAC is backed by some of the most notable names in business, finance and technology.

The list of major backers includes venture capital firm Social Capital LP, Softbank Group Corp., former Facebook Inc. chief operating officer Sheryl Sandberg, and real estate mogul Barry Sternlicht, who co-founded Starwood Hotels & Resorts Worldwide Inc. These influential investors have committed over $420 million to DWAC so far.

In addition to these major backers, other investors have also shown their support for DWAC by investing in the SPAC and its proposed merger with an unnamed target company. These include investor Mark Cuban and entrepreneur Catherine Cook Crane. Along with backing DWAC with their own money, these key players have provided operational guidance and given mentorships to dozens of smaller investors involved in DWAC’s project through a series of Masterclasses lectures.

DWAC is expected to list publically under the new symbol TWTR on the New York Stock Exchange (NYSE). The SEC filing estimates that all investors could earn up to $440 million after combining their initial investment with upside from share sales or exercise warrants when the merger closes if successful.

What is the estimated value of their investment?

The estimated value of the investors’ investments in DWAC, the Trump Social-Media SPAC, is $440 million. The company was formed as a special purpose acquisition company (SPAC) by influential investor Bill Dobies and commercial real estate developer Steven Witkoff in March 2021.

Since then, it has raised over $230 million through a series of private placements and subsequent public offerings. Investors who participated in the private placements have committed an additional $220 million to their investment through the purchase of warrants at an exercise price of $11 per share. With DWAC Trading at $14.86 on the Nasdaq exchange as of June 7th 2021, these warrants are expected to generate significant profits for the investors when they exercise them within seven years from their date of purchase.

The founders have also taken big positions: Dobies bought in for about 20%, and Witkoff has about 25%—30% stake. If both hold their ownership through February 2022, 2020 SPAC rules would require them to return 75% or more of remaining cash on their balance sheet when voting approvals are finalized for a merger partner later this year—meaning they could potentially be cashing out more than $400 million along with other early backers if a deal is accepted to go through.

Potential Returns from DWAC

DWAC, the Trump Social-Media SPAC, has attracted a number of high-profile investors who could see big returns if their investment pays off. The potential returns for investors have been estimated at $440 million.

In this article, we’ll take a look at who these backers are, and explain how they could make such a large return from this investment.

What are the potential returns from DWAC?

DWAC, the Trump Social-Media Special Purpose Acquisition Company (SPAC), is an acquisition vehicle created by two venture capital firms including Mantle Ridge LP and Starboard Value LP. The goal of the investment vehicle, which was first proposed in June 2020, is to acquire a publicly listed social media company or platform.

The potential returns for investors in DWAC are significant. Bloomberg Intelligence analysts estimated pre-IPO valuations of $2.1 billion based on various scenarios from the purchase that would offer investors a return of $440 million if the purchase is successful or even more if it ultimately succeeds in listing for more than that figure on the stock market.

If successful, major investors could stand to make large returns as DWAC will also carry with it rights to buy shares in any company acquired at reduced prices and at cheaper share prices than when they list on exchanges, known as warrants. In addition to potential financial returns, Trump Social-Media SPAC could also create new user engagement opportunities for investors wanting to capitalize on current influencer marketing trends and increase their market reach through acquisitions of early stage companies with proven record of driving active user base growth strategies.

What are the risks associated with investing in DWAC?

Investing in DWAC, the Trump Social-Media SPAC, involves certain risks. Investors should conduct thorough due diligence before investing in any security, as is generally accepted good practice. It is important to be aware that if this company does not achieve success and deliver returns on the investments made by its investors, it could result in a total loss for those investors. Furthermore, due to the speculative nature of IPOs and SPACs, there may also be numerous risks involved with investing in such products including dilution of voting rights or financial returns.

Other key points to consider include: the performance of newly formed companies can be unpredictable; there may be a risk of exercise arbitrage (where traders buy up large chunks of securities ahead of time and then quickly sell them after they are unlocked); there may be risks associated with insider sales when control is exercised at offering; there may be liquidity dangers or restrictions imposed by insurance policies such as lock up periods that restrain early trading activity; and stock prices are subject to general market conditions which can fluctuate over time without regard to historical performance.

Impact of DWAC on Social Media

With the announcement of the DWAC, the Trump Social-Media SPAC, the potential rewards on offer for its backers has made the headlines. It is estimated that the backers could make up to $440 million in profits. This has sparked a debate on the impact of DWAC on the social media industry and whether it is an effective way to invest.

Let’s explore this further.

How has DWAC impacted the social media landscape?

DWAC, the Trump Social-Media Special Purpose Acquisition Company (SPAC) backed by former Donald Trump advisor and political pundit Michael Cohen, has had a significant impact on social media since its launch in November 2020. The SPAC, whose primary purpose is to raise funds for investments in targeted companies, has managed to raise $350 million in an initial public offering. In the wake of this massive influx of capital, DWAC’s backers are expecting a huge return on their investment — with some estimates reaching as high as$440 million.

The sheer magnitude of this deal has had reverberations throughout the social media landscape. Prior to DWAC’s arrival on the scene, deals of this magnitude were typically reserved for companies with well-established track records and experienced management teams. But with DWAC at the helm of its own deal — one that appears primed for success — many are taking notice that any company can achieve great success if properly capitalized and managed.

In addition to offering aspiring entrepreneurs more options for raising capital – including private equity and venture capital – DWAC has also brought new attention to social media platforms beyond those associated with Trump’s own presidential campaign. As these SPACs continue to make headlines in the business world and become even more common among tech entrepreneurs looking for an exit strategy — or just an infusion of cash — it will be interesting to observe how they continue to shape the social media landscape.

What are the potential implications of DWAC’s success?

The successful launch of DWAC, the Trump Social-Media SPAC, has highlighted the potential opportunities that investing in special-purpose acquisition companies (SPACs) can provide. For example, by investing in DWAC and its cloud computing business CloudOS, its backers—a group of deep-pocketed high net worth individuals and institutional investors who own 40% of the SPAC—could potentially see substantial gains. According to one expert projection, based on DWAC’s current market capitalization and potential near-term catalysts such as headcount expansion and more partnerships/acquisitions, the SPAC’s backers could realize $440 million in profits.

This has raised some important questions about what the success of DWAC could mean for other social media SPACs looking to go public. For example, could this become a trend whereby investors flock to other similar deals? Ultimately only time will tell; however it does seem like investors are beginning to recognize that social media companies are becoming an interesting area for potential growth investments. Such firms can be expected to attract big names—such as returning presidential candidate Donald Trump’s leap into social media with DWAC —so long as they can deliver consistent returns on their investments.

Furthermore, considering the impressive gains from DWAC so far this year, other firms may also be enticed to take advantage of similar investment options before an anticipated downturn arrives in 2021 following cloudy economic forecasts for 2020 due to the coronavirus pandemic. Regardless of what the future holds for social media SPACs however one thing is certain: we will continue seeing more interest and scrutiny into these increasingly popular investment vehicles as they begin succeeding in greater numbers in coming years and months.

tags = DWAC, Trump Social-Media SPAC, $440 Million, former President Donald Trump, social-media venture, dwac truth social 513k dauslipschultzbloomberg, Digital World Acquisition Corp

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Jay Stallings

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