Trump's social media venture says it has raised $1 billion
The $1 billion will be raised through a private investment in public equity
(Reuters) - Donald Trump’s new social media venture said on Saturday it had entered into agreements to raise about $1 billion from a group of unidentified investors as it prepares to float in the U.S. stock market.
The capital raise, details of which were first reported by Reuters on Wednesday, underscored the former U.S. president’s ability to attract strong financial backing thanks to his personal and political brand. He is working to launch a social media app called TRUTH Social that is at least several weeks away.
Digital World Acquisition Corp, the blank-check acquisition firm that will take Trump Media & Technology Group Corp public by listing it in New York, said it will provide up to $293 million to the partnership with Trump’s media venture, taking the total proceeds to about $1.25 billion.
The $1 billion will be raised through a private investment in public equity (PIPE) transaction from "a diverse group of institutional investors," Trump Media and Digital World said in a statement. They did not respond to requests to name the investors.
Trump Media inked its deal with Digital World to go public in October at a valuation of $875 million.
