The company planning to buy Donald Trumps new social media business disclosed Monday that it has received subpoenas from a grand jury in New York.
Shares of Digital World Acquisition Corp. dropped 7% in morning trading Monday as the company reported that the subpoenas and related investigations by the Department of Justice and the Securities and Exchange Commission could delay its acquisition of the maker of Trump's Truth Social app.
Trumps social media venture launched in February as he seeks a new digital stage to rally his supporters and fight Big Tech limits on speech, a year after he was banned from Twitter, Facebook and YouTube.
The Trump Media & Technology Group which operates the app and was in the process of being acquired by blank-check firm Digital World said in a statement that it will cooperate with "oversight that supports the SECs important mission of protecting retail investors.Digital World said in a regulatory filing Monday that each member of its board of directors has been subpoenaed by a grand jury in the Southern District of New York. Both the grand jury and the SEC are also seeking a number of documents tied to the company and others including ARC Global Investments and Rocket One Capital.