Trump Communications and Technology Corporation (TMTG) was announced it lined up 1 million dollar from undisclosed investors when a future consolidation deal is in place, and it is safe to assume that Nunes will at least receive a decent salary as CEO. One must be surprised, however, at an arrangement that took him from the GOP’s center of power to a position in the private sector that he seemed unqualified to fill.
Given his tendency to value loyalty above other traits, Trump’s hiring of Nunes stems from his old book. Then the question becomes: What’s in it for Nunes? When taking on the role, he will give up his chance to chair the powerful House Ways and Means Committee should Republicans take control of the House in the 2022 midterm elections. However, the congressman will face a challenge. tough election, with his current district redrawn to include more Democratic voters. In this context, why not avoid all that trouble, potentially make more money in the private sector, and forge closer ties with the former president, who still holds considerable power. for GOP?
The answer to “why not” may lie in the risks involved in getting into Trump’s media. Although it has yet to actually conduct any business in the traditional sense of the word, Trump Media and Technology Corporation has caught the eye of the SEC. The problem is complicated, but the summary is Federal regulators are investigating an agreement for TMTG to merge with another organization called Digital World Acquisition, a special purpose acquisition company (SPAC).
A SPAC It is sometimes called a white check company, because it has no activities other than what is needed to raise capital. It sells shares to investors through an initial public offering with the intention of later merging with a private company in a process that allows the private company to go public more quickly.
Since they are essentially buying a pig in a vote, the investors of SPAC mainly rely on the credentials of the creators of the SPAC. When the famous financier Richard Branson created a company, his stellar history of success with Virgin Group certainly added to the allure of the offering. But shares of Branson SPAC, known as VG Acquisition Corp., have moved on ride a roller coaster in 2020 before it finally found a fusion partner. So far, everything seems work well enough, as the merger saw Branson enter into a real business with cash flow.
The SPAC transforms the digital world headed by Patrick Orlando, who worked at Deutsche Bank of Germany and founded his own investment bank, and it is backed by several large hedge funds. But the Securities and Exchange Commission issued a Investigation is ongoing Enter the Digital World Acquisition Company, requesting information about your transaction with TMTG. The SPACs were supposed to raise capital before the merger was completed and the Digital World Acquisition Company may have been subject to securities laws under discuss a potential deal before it is made public without disclosing it.
In an application filed on December 6, Digital World says it received a request for documents and information from the SEC, including documents related to board of directors meetings; policies and procedures related to transactions; and identify the bank, phone and email addresses and identities of certain investors.
Digital World said it cooperated with the request, add According to the SEC, the investigation does not mean that federal regulators have “concluded that anyone broke the law or that the SEC has a negative view of DWAC or any person, event, or security.” .” The Trump Media and Technology Corporation did not respond to a request for comment.
SPAC investors who were initially attracted to Orlando’s financial news may not be reassured by Trump’s business record, although he will certainly have a loyal following. want to join the joint venture. Following the January 6 attack on the US Capitol, Trump was banned from social media platforms like Twitter and Facebook, limiting his ability to spread misinformation and hijack the day’s news. Trump is against these tech companies, claiming they are banning free speech. When two radio hosts who once competed on “The Apprentice” convinced Trump of the idea of a new conservative media company, they agreed to form one and merge with a SPAC, New York Times report.
Trump, however, is famous for his many failed and bankrupt businesses, including one involving a public company traded under the symbol DJT. In that case, the company gave Trump a nice bonus and get paid to maintain his jet before declaring bankruptcy cost investors dearly.
As for Nunes, his background is political, not corporate. A Republican was first elected in 2002 At the age of 29, he was re-elected every two years thanks to California’s Republican-leaning 22nd congressional district. Early in his career, he sponsored bills to help his voters, especially dairy farmers. (His own family with history in the industry.)
After that, Nunes began to show a more aggressive side. In 2010, he published a book in which he called warnings about climate change “hysteria” from a “Doomsday cult.” In 2014, he went after Republican Representative Justin Amash after Amash criticized US security surveillance. He called his colleague “Al Qaeda’s Best Friend in Congress.”
Despite increasing seniority, eventually becoming chairman of the House Intelligence Committee, Nunes had no real national record until becoming one of Donald Trump’s more devoted supporters. Finally, he resembles the former president as a thin-skinned and super-aggressive character. Nunes sued a lot news organizations, including CNN, as well as a GOP consultant and a fruit farmer that Nunes felt offended him. He even went to court in an attempt to silence an unknown person who ran a parody social media account under the name Devin Nunes’ Cow.
Winning the position of CEO of a media company could be Nunes’ reward for his years serving as president. Anyone can guess how big this reward will be. But according to the company’s own documents, TMTG project $3.6 billion in business by 2026.
Of course, it’s all speculation at the moment. Before dealing with this group, however, investors would be wise to do their due diligence as to who would hold the empty checkbook.