Donald Trump’s new social media company claims it has reached agreements with investors to fund $1 billion (£755 million) ahead of a potential stock market debut.
Early next year, the Trump Networking & Technology Group plans to introduce Truth Social, a social media app.
Following the attack on the US Capitol in January, Mr Trump was banned from Twitter and Facebook.
He said the $1 billion “sends an essential message to Big Tech that censorship and political discrimination must cease.”
“As our balance sheet grows, Trump Media & Technology Group will be better able to fight back against Big Tech’s tyranny.”
Earlier this year, Mr. Trump announced intentions to establish Truth Social, claiming that it would allow people to talk “without prejudice based on political viewpoint.”
Digital World Acquisition, a so-called special purpose acquisition company (Spac) or “blank cheque firm,” has collaborated with Trump Media & Technology Group on the project.
Spacs, which became a significant topic in the US stock market at the beginning of this year, are shell corporations formed solely for the goal of merging with a private company and taking it public. They have, however, lost a lot of their luster after several of the firms who merged with them failed to meet their lofty financial goals.
Mr Trump’s business said on Saturday that it had received $1 billion from “a diversified collection of institutional investors,” but did not name them. According to estimates, the social networking company is now worth about $4 billion.
Despite the turmoil surrounding his presidency, it appears to demonstrate the former US president’s capacity to gather substantial financial backing.
Following the 6 January attack on the US Capitol in Washington, DC by his supporters, Mr Trump was barred from using major social media platforms for fear of inciting additional violence.
It occurred after Mr Trump claimed, without proof, that last year’s presidential election had been tainted by rampant fraud.
According to Reuters, several Wall Street corporations passed up the chance to invest in the former president’s new enterprise. However, it has received support from hedge funds, family investment businesses, and high-net-worth individuals.
According to a presentation on his company’s website, Mr Trump had 89 million Twitter followers, 33 million Facebook followers, and 24.5 million Instagram followers at the time he was blocked.
He’s also hinted that he would run for president again in 2024 on several occasions.
However, there have been concerns regarding the former president’s financial situation. A congressional committee determined last month that he had “grossly inflated” the profitability of his Washington, DC hotel, charges that the Trump Organization dismissed as “misleading.”
The alliance between Trump Media & Technology Group and Digital World Acquisition has already drawn criticism.
Senator Elizabeth Warren, a Democrat, urged the Securities and Exchange Commission last month to look into the planned merger for possible securities law breaches.
The SEC has refused to say if it intends to take any action.
The complete launch of Truth Social is planned for the first quarter of 2022. According to the press release, it is the first of three stages in the Trump Media plan, which will be followed by a subscription video-on-demand service dubbed TMTG+, which will include entertainment, news, and podcasts.
The startup foresee competing against Amazon.com’s AWS cloud service and Google Cloud in the future, according to a presentation deck on its website.