Donald Trump is fighting to get his media company off the ground and into public markets, but Tesla CEO Elon Musk keeps getting in his way with his effort to buy Twitter (TWTR).
Shares of Digital World Acquisition Company (DWAC) — the blank-check company aiming to merge with Trump’s Truth Social — dropped over 4% on Tuesday on the news that Musk was reversing course and planned to purchase Twitter for $44 billion after initially trying to back out of the deal in July.
Tuesday’s decline is just the latest setback for Trump. The Trump Media & Technology Group (TMTG), which operates Truth Social, has confronted a range of obstacles in recent months. Those include a Securities and Exchange Commission probe into possible wrongdoing; reported financial troubles within the company; and an ice-cold special purpose acquisition company (SPAC) market.
And that all came before Elon Musk filed a letter Tuesday seeking to buy Twitter on the original terms he agreed to, reviving questions about whether Trump and other conservatives will flock back. The Tesla (TSLA) CEO has signaled his inclination to allow posting with little controls such as fact-checking or consequences for expressing hateful views if he runs the company.