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Trump SPAC Digital World sinks on report two Truth Social executives left, Musk takes Twitter stake

Apr. 04, 2022 8:04 AM ETDigital World Acquisition Corp. (DWAC)TSLA, TWTRBy: Joshua Fineman, SA News Editor73 Comments
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Trump SPAC Digital World Acquisition (NASDAQ:DWAC), which is taking Trump's social media company public, plunged 14% in premarket trading on a report that two executives have left Truth Social and Tesla's (TSLA) Elon Musk reported a stake in rival Twitter (TWTR).

Josh Adams and Billy Boozer, the company's head of technology and product development, have both resigned from their senior posts, according to a Reuters report, which cited people familiar with the matter.

The news comes as Twitter shares skyrocketed 24% in premarket trading after Musk disclosed that he owned 73.5 million shares of Twitter (TWTR), good for a 9.2% passive stake in the company.

Trump's new social media platform Truth Social officially launched in late February, which sent the SPAC's shares up 10% on the platform's first full day. Since hitting a high of over $97/share in early March the shares have plunged 40% through Monday morning.

Boozer declined to comment to Reuters and Adams did not respond to a request. Representatives for TMTG and Trump did not respond to requests for comment from Reuters.

Digital World Acquisition (DWAC) saw a massive rally in wake of news that it will take Trump's new media company public via a SPAC merger. The stock gained more than 350% when the news was announced Oct. 21.

Earlier, Elon Musk's large stake in Twitter is 'just the start,' Wedbush's Ives says.