Merging with a special purpose acquisition company allows a private company to access a large amount of cash, become a public company, sell stock to investors, and raise more funds. This strategy enables the private company to gain all the raised cash from investors through the merger, as envisioned in the plan to merge with Trump's social media company. The focus is on finding a SPAC that has raised significant funds, rather than top-tier companies with well-defined business plans.
Over the past few years, Donald Trump’s social media platform, Truth Social, has been dismissed as a money-losing boondoggle.
This week, that all changed. Matthew Goldstein, a New York Times business reporter, explains how its parent venture, Truth Media, became a publicly traded company worth billions of dollars.
Guest: Matthew Goldstein, a New York Times business reporter.
Background reading:
For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.