Topline
Former President Donald Trump's new media venture announced Tuesday it's partnering with Rumble, a Canadian video platform popular among conservatives and the far-right, to host video services on the planned social media network TRUTH Social, which Trump said will "serve as a critical backbone" for the site's infrastructure.
Then President Donald Trump speaks at a "Make America Great Again" rally in Phoenix on August 22, ... [+]
Key Facts
The Trump Media and Technology Group (TMGT) announced the decision Tuesday to partner with Rumble for in a "wide-ranging technology and cloud services agreement," while also saying the companies are in "exclusive negotiations" to launch a subscription-based streaming service called TMGT+.
TMGT also claimed for the first time that a beta version of the TRUTH Social website has been launched, after it was reported the beta version hadn't gone online by TMGT's self-imposed November deadline.
Trump said in a statement that Rumble is already providing cloud services to the beta website, which he said is for "invited guests only."
A full rollout of the website is expected in the first quarter of 2022.
Crucial Quote
"The initial Beta launch has been excellent," Trump said. "America is ready for TRUTH Social, and the end to cancel culture.”
Key Background
TMGT and Rumble are both set to be publicly listed after merging with special purpose acquisition companies (SPACs). Shares of the SPAC merging with TMGT, called Digital World Acquisition Corp., soared from around $10 a share from before the October announcement of Trump's new media company to as high as $175, before settling back to around $50 a share recently, with the price spiking more than 6% in after hours trading following Tuesday's announcement. Shares of CF Acquisition Corp. VI, the SPAC Rumble is merging with, rose more than 14% to $12.86 a share at times in after hours trading Tuesday.
What To Watch For
TMGT is reportedly trying to raise up to $1 billion by selling shares to hedge funds. Trump has personally phoned potential investors asking for more than $100 million, according to Reuters.
Further Reading
Trump SPAC social media company appears to miss its first product deadline (CNBC)
Video platform Rumble is going public (Axios)
Trump’s SPAC Is Screwing His Own Supporters While Enriching Wall Street Elites (Forbes)
