Trump SPAC deal values firm at $10 billion despite no known revenue or product_老虎社区_美港股上老虎

Trump SPAC deal values firm at $10 billion despite no known revenue or product

CNN Business2021-12-15

New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product. Trump Media & Technology Group(TMTG) posted an investor presentation last week that appears...

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128

tkj
·2021-12-15
Donald Trump has done it again! He has managed to fool some of the people all of the time....he is at it again trying to gain something out or nothing.....how the stock performed after listing will reflect how many fools out there🙄🙄
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Bob87
·2021-12-15
Not sure how that valuation is derived. Maybe it's worth $10 only but the 0 button on the keyboard got stuck
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aden53
·2021-12-15
Sounds risky to me
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- Kelvin_Qiu:
  [Happy]ya
  2021-12-15
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VinKuang
·2021-12-15
Pls like tyvm[Happy]
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3
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MFME
·2021-12-15
Time for fall..
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1
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ValuInvestor
·2021-12-15
Shady
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1
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- Sfun:
  ok
  2021-12-15
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pekss
·2021-12-15
Speculative play
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3
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KYHBKO
·2021-12-15
invest to make money, not just to support a cause. there are many red flags. while there are opportunities to make money from hype, but the risk is great too. DYODD
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6
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Gackky
·2021-12-15
hype and FOMO and dumb money
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3
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- Venus_M:
  that's the game you love to play. admit it [Happy]
  2021-12-15
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- kungpao:
  LOL so true
  2021-12-15
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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">网页链接</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","article_id":"1144559089","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","pubTimestamp":1639537425,"columns":[],"sourceInfo":null,"weMediaInfo":null,"summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","collect":0,"end_time":0,"defaultTopTitle":"cnn.com","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"特朗普SPAC交易对该公司的估值为100亿美元，尽管没有已知的收入或产品","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DWAC":0.9},"content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":607503235,"gmtCreate":1639555612125,"gmtModify":1639558094672,"author":{"id":"3582020830270271","authorId":"3582020830270271","name":"tkj","avatar":"https://static.tigerbbs.com/b4db3635974ce189ed8129eca6b5b618","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3582020830270271","authorIdStr":"3582020830270271"},"htmlText":"Donald Trump has done it again! He has managed to fool some of the people all of the time....he is at it again trying to gain something out or nothing.....how the stock performed after listing will reflect how many fools out there🙄🙄","listText":"Donald Trump has done it again! He has managed to fool some of the people all of the time....he is at it again trying to gain something out or nothing.....how the stock performed after listing will reflect how many fools out there🙄🙄","text":"Donald Trump has done it again! He has managed to fool some of the people all of the time....he is at it again trying to gain something out or nothing.....how the stock performed after listing will reflect how many fools out there🙄🙄","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/607503235","repostId":1144559089,"repostType":4,"repost":{"id":"1144559089","kind":"news","pubTimestamp":1639537425,"share":"https://www.laohu8.com/m/news/1144559089?lang=&edition=full","pubTime":"2021-12-15 11:03","market":"us","language":"en","title":"Trump SPAC deal values firm at $10 billion despite no known revenue or product","url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","media":"CNN Business","summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","content":"New York (CNN Business)&nbsp;-&nbsp;Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media &amp; Technology Group(TMTG) posted an&nbsp;investor presentation&nbsp;last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman&nbsp;Devin Nunes, has&nbsp;no business experience in technology or social media. And&nbsp;federal regulators are investigating&nbsp;the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire&nbsp;and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting&nbsp;regulators to warn investors&nbsp;not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe&nbsp;Trump SPAC instantly set off a frenzy&nbsp;on Wall Street -- even though little was known about the new entity. Shares of Digital World&nbsp;skyrocketed as much as 1,657%&nbsp;in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a&nbsp;Twitter thread&nbsp;over the weekend. Legum pointed out that the&nbsp;language on the infrastructure slide&nbsp;is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on&nbsp;Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of&nbsp;Citrix.\nLikewise, the definition of a client matches what is found on the website of&nbsp;Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal&nbsp;to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a&nbsp;filing&nbsp;it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the&nbsp;New York Times reported&nbsp;that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted&nbsp;Senator Elizabeth Warren to call for the SEC to investigate&nbsp;whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a&nbsp;former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His&nbsp;Congressional website&nbsp;says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump SPAC deal values firm at $10 billion despite no known revenue or product</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1144559089","content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":607273369,"gmtCreate":1639553474880,"gmtModify":1639553474967,"author":{"id":"3582655395149820","authorId":"3582655395149820","name":"Bob87","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3582655395149820","authorIdStr":"3582655395149820"},"htmlText":"Not sure how that valuation is derived. Maybe it's worth $10 only but the 0 button on the keyboard got stuck","listText":"Not sure how that valuation is derived. Maybe it's worth $10 only but the 0 button on the keyboard got stuck","text":"Not sure how that valuation is derived. Maybe it's worth $10 only but the 0 button on the keyboard got stuck","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/607273369","repostId":1144559089,"repostType":2,"repost":{"id":"1144559089","kind":"news","pubTimestamp":1639537425,"share":"https://www.laohu8.com/m/news/1144559089?lang=&edition=full","pubTime":"2021-12-15 11:03","market":"us","language":"en","title":"Trump SPAC deal values firm at $10 billion despite no known revenue or product","url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","media":"CNN Business","summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","content":"New York (CNN Business)&nbsp;-&nbsp;Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media &amp; Technology Group(TMTG) posted an&nbsp;investor presentation&nbsp;last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman&nbsp;Devin Nunes, has&nbsp;no business experience in technology or social media. And&nbsp;federal regulators are investigating&nbsp;the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire&nbsp;and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting&nbsp;regulators to warn investors&nbsp;not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe&nbsp;Trump SPAC instantly set off a frenzy&nbsp;on Wall Street -- even though little was known about the new entity. Shares of Digital World&nbsp;skyrocketed as much as 1,657%&nbsp;in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a&nbsp;Twitter thread&nbsp;over the weekend. Legum pointed out that the&nbsp;language on the infrastructure slide&nbsp;is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on&nbsp;Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of&nbsp;Citrix.\nLikewise, the definition of a client matches what is found on the website of&nbsp;Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal&nbsp;to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a&nbsp;filing&nbsp;it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the&nbsp;New York Times reported&nbsp;that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted&nbsp;Senator Elizabeth Warren to call for the SEC to investigate&nbsp;whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a&nbsp;former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His&nbsp;Congressional website&nbsp;says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump SPAC deal values firm at $10 billion despite no known revenue or product</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1144559089","content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":607240312,"gmtCreate":1639551788300,"gmtModify":1639551793075,"author":{"id":"4094435594173410","authorId":"4094435594173410","name":"aden53","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4094435594173410","authorIdStr":"4094435594173410"},"htmlText":"Sounds risky to me","listText":"Sounds risky to me","text":"Sounds risky to me","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/607240312","repostId":1144559089,"repostType":2,"repost":{"id":"1144559089","kind":"news","pubTimestamp":1639537425,"share":"https://www.laohu8.com/m/news/1144559089?lang=&edition=full","pubTime":"2021-12-15 11:03","market":"us","language":"en","title":"Trump SPAC deal values firm at $10 billion despite no known revenue or product","url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","media":"CNN Business","summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","content":"New York (CNN Business)&nbsp;-&nbsp;Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media &amp; Technology Group(TMTG) posted an&nbsp;investor presentation&nbsp;last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman&nbsp;Devin Nunes, has&nbsp;no business experience in technology or social media. And&nbsp;federal regulators are investigating&nbsp;the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire&nbsp;and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting&nbsp;regulators to warn investors&nbsp;not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe&nbsp;Trump SPAC instantly set off a frenzy&nbsp;on Wall Street -- even though little was known about the new entity. Shares of Digital World&nbsp;skyrocketed as much as 1,657%&nbsp;in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a&nbsp;Twitter thread&nbsp;over the weekend. Legum pointed out that the&nbsp;language on the infrastructure slide&nbsp;is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on&nbsp;Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of&nbsp;Citrix.\nLikewise, the definition of a client matches what is found on the website of&nbsp;Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal&nbsp;to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a&nbsp;filing&nbsp;it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the&nbsp;New York Times reported&nbsp;that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted&nbsp;Senator Elizabeth Warren to call for the SEC to investigate&nbsp;whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a&nbsp;former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His&nbsp;Congressional website&nbsp;says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump SPAC deal values firm at $10 billion despite no known revenue or product</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1144559089","content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6989601,"gmtCreate":1639553011679,"gmtModify":1639553011782,"authorId":3581638828642415,"author":{"id":3581638828642415,"idStr":"3581638828642415","authorId":3581638828642415,"name":"Kelvin_Qiu","avatar":"https://static.tigerbbs.com/58df4d9e030a9766be7d0b65f5e798af","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":607240312,"type":1,"supId":0,"prevId":0,"content":"[Happy]ya","text":"[Happy]ya","html":"[Happy]ya"}],"langContent":"CN"},{"id":607257983,"gmtCreate":1639551651128,"gmtModify":1639551744637,"author":{"id":"3577323914202336","authorId":"3577323914202336","name":"VinKuang","avatar":"https://static.tigerbbs.com/536d624e5750dcffec704eeed9bc003b","vip":1,"crmLevel":8,"crmLevelSwitch":0,"idStr":"3577323914202336","authorIdStr":"3577323914202336"},"htmlText":"Pls like tyvm[Happy]&nbsp;","listText":"Pls like tyvm[Happy]&nbsp;","text":"Pls like tyvm[Happy]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/607257983","repostId":1144559089,"repostType":2,"repost":{"id":"1144559089","kind":"news","pubTimestamp":1639537425,"share":"https://www.laohu8.com/m/news/1144559089?lang=&edition=full","pubTime":"2021-12-15 11:03","market":"us","language":"en","title":"Trump SPAC deal values firm at $10 billion despite no known revenue or product","url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","media":"CNN Business","summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","content":"New York (CNN Business)&nbsp;-&nbsp;Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media &amp; Technology Group(TMTG) posted an&nbsp;investor presentation&nbsp;last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman&nbsp;Devin Nunes, has&nbsp;no business experience in technology or social media. And&nbsp;federal regulators are investigating&nbsp;the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire&nbsp;and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting&nbsp;regulators to warn investors&nbsp;not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe&nbsp;Trump SPAC instantly set off a frenzy&nbsp;on Wall Street -- even though little was known about the new entity. Shares of Digital World&nbsp;skyrocketed as much as 1,657%&nbsp;in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a&nbsp;Twitter thread&nbsp;over the weekend. Legum pointed out that the&nbsp;language on the infrastructure slide&nbsp;is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on&nbsp;Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of&nbsp;Citrix.\nLikewise, the definition of a client matches what is found on the website of&nbsp;Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal&nbsp;to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a&nbsp;filing&nbsp;it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the&nbsp;New York Times reported&nbsp;that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted&nbsp;Senator Elizabeth Warren to call for the SEC to investigate&nbsp;whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a&nbsp;former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His&nbsp;Congressional website&nbsp;says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump SPAC deal values firm at $10 billion despite no known revenue or product</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1144559089","content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":607262723,"gmtCreate":1639548886177,"gmtModify":1639548886504,"author":{"id":"3574399983193226","authorId":"3574399983193226","name":"MFME","avatar":"https://static.tigerbbs.com/9c7d2325aa9eb91869c4c7144270a75a","vip":1,"crmLevel":7,"crmLevelSwitch":0,"idStr":"3574399983193226","authorIdStr":"3574399983193226"},"htmlText":"Time for fall..","listText":"Time for fall..","text":"Time for fall..","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/607262723","repostId":1144559089,"repostType":4,"repost":{"id":"1144559089","kind":"news","pubTimestamp":1639537425,"share":"https://www.laohu8.com/m/news/1144559089?lang=&edition=full","pubTime":"2021-12-15 11:03","market":"us","language":"en","title":"Trump SPAC deal values firm at $10 billion despite no known revenue or product","url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","media":"CNN Business","summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","content":"New York (CNN Business)&nbsp;-&nbsp;Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media &amp; Technology Group(TMTG) posted an&nbsp;investor presentation&nbsp;last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman&nbsp;Devin Nunes, has&nbsp;no business experience in technology or social media. And&nbsp;federal regulators are investigating&nbsp;the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire&nbsp;and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting&nbsp;regulators to warn investors&nbsp;not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe&nbsp;Trump SPAC instantly set off a frenzy&nbsp;on Wall Street -- even though little was known about the new entity. Shares of Digital World&nbsp;skyrocketed as much as 1,657%&nbsp;in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a&nbsp;Twitter thread&nbsp;over the weekend. Legum pointed out that the&nbsp;language on the infrastructure slide&nbsp;is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on&nbsp;Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of&nbsp;Citrix.\nLikewise, the definition of a client matches what is found on the website of&nbsp;Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal&nbsp;to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a&nbsp;filing&nbsp;it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the&nbsp;New York Times reported&nbsp;that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted&nbsp;Senator Elizabeth Warren to call for the SEC to investigate&nbsp;whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a&nbsp;former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His&nbsp;Congressional website&nbsp;says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump SPAC deal values firm at $10 billion despite no known revenue or product</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1144559089","content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":607230497,"gmtCreate":1639542118219,"gmtModify":1639542118594,"author":{"id":"4087361572396550","authorId":"4087361572396550","name":"ValuInvestor","avatar":"https://static.tigerbbs.com/5a962911d3cd0763a9f0cb01392cacd9","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"4087361572396550","authorIdStr":"4087361572396550"},"htmlText":"Shady","listText":"Shady","text":"Shady","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/607230497","repostId":1144559089,"repostType":4,"repost":{"id":"1144559089","kind":"news","pubTimestamp":1639537425,"share":"https://www.laohu8.com/m/news/1144559089?lang=&edition=full","pubTime":"2021-12-15 11:03","market":"us","language":"en","title":"Trump SPAC deal values firm at $10 billion despite no known revenue or product","url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","media":"CNN Business","summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","content":"New York (CNN Business)&nbsp;-&nbsp;Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media &amp; Technology Group(TMTG) posted an&nbsp;investor presentation&nbsp;last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman&nbsp;Devin Nunes, has&nbsp;no business experience in technology or social media. And&nbsp;federal regulators are investigating&nbsp;the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire&nbsp;and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting&nbsp;regulators to warn investors&nbsp;not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe&nbsp;Trump SPAC instantly set off a frenzy&nbsp;on Wall Street -- even though little was known about the new entity. Shares of Digital World&nbsp;skyrocketed as much as 1,657%&nbsp;in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a&nbsp;Twitter thread&nbsp;over the weekend. Legum pointed out that the&nbsp;language on the infrastructure slide&nbsp;is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on&nbsp;Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of&nbsp;Citrix.\nLikewise, the definition of a client matches what is found on the website of&nbsp;Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal&nbsp;to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a&nbsp;filing&nbsp;it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the&nbsp;New York Times reported&nbsp;that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted&nbsp;Senator Elizabeth Warren to call for the SEC to investigate&nbsp;whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a&nbsp;former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His&nbsp;Congressional website&nbsp;says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump SPAC deal values firm at $10 billion despite no known revenue or product</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1144559089","content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6988800,"gmtCreate":1639545572219,"gmtModify":1639545572252,"authorId":3579425512905776,"author":{"id":3579425512905776,"idStr":"3579425512905776","authorId":3579425512905776,"name":"Sfun","avatar":"https://static.tigerbbs.com/677878018d08b9f3288b2153431bff4a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":607230497,"type":1,"supId":0,"prevId":0,"content":"ok","text":"ok","html":"ok"}],"langContent":"CN"},{"id":607291918,"gmtCreate":1639540882400,"gmtModify":1639540882793,"author":{"id":"3581636635898281","authorId":"3581636635898281","name":"pekss","avatar":"https://static.tigerbbs.com/7dfef98c44b3810cffef7f3eb78524ba","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3581636635898281","authorIdStr":"3581636635898281"},"htmlText":"Speculative play","listText":"Speculative play","text":"Speculative play","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/607291918","repostId":1144559089,"repostType":4,"repost":{"id":"1144559089","kind":"news","pubTimestamp":1639537425,"share":"https://www.laohu8.com/m/news/1144559089?lang=&edition=full","pubTime":"2021-12-15 11:03","market":"us","language":"en","title":"Trump SPAC deal values firm at $10 billion despite no known revenue or product","url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","media":"CNN Business","summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","content":"New York (CNN Business)&nbsp;-&nbsp;Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media &amp; Technology Group(TMTG) posted an&nbsp;investor presentation&nbsp;last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman&nbsp;Devin Nunes, has&nbsp;no business experience in technology or social media. And&nbsp;federal regulators are investigating&nbsp;the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire&nbsp;and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting&nbsp;regulators to warn investors&nbsp;not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe&nbsp;Trump SPAC instantly set off a frenzy&nbsp;on Wall Street -- even though little was known about the new entity. Shares of Digital World&nbsp;skyrocketed as much as 1,657%&nbsp;in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a&nbsp;Twitter thread&nbsp;over the weekend. Legum pointed out that the&nbsp;language on the infrastructure slide&nbsp;is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on&nbsp;Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of&nbsp;Citrix.\nLikewise, the definition of a client matches what is found on the website of&nbsp;Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal&nbsp;to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a&nbsp;filing&nbsp;it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the&nbsp;New York Times reported&nbsp;that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted&nbsp;Senator Elizabeth Warren to call for the SEC to investigate&nbsp;whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a&nbsp;former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His&nbsp;Congressional website&nbsp;says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump SPAC deal values firm at $10 billion despite no known revenue or product</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1144559089","content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":607204121,"gmtCreate":1639540262484,"gmtModify":1639540262484,"author":{"id":"3574381076586256","authorId":"3574381076586256","name":"KYHBKO","avatar":"https://static.tigerbbs.com/c3bcbc7f9a10836dea92afc94bf39b5b","vip":2,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3574381076586256","authorIdStr":"3574381076586256"},"htmlText":"invest to make money, not just to support a cause. there are many red flags. while there are opportunities to make money from hype, but the risk is great too. DYODD","listText":"invest to make money, not just to support a cause. there are many red flags. while there are opportunities to make money from hype, but the risk is great too. DYODD","text":"invest to make money, not just to support a cause. there are many red flags. while there are opportunities to make money from hype, but the risk is great too. DYODD","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/607204121","repostId":1144559089,"repostType":4,"repost":{"id":"1144559089","kind":"news","pubTimestamp":1639537425,"share":"https://www.laohu8.com/m/news/1144559089?lang=&edition=full","pubTime":"2021-12-15 11:03","market":"us","language":"en","title":"Trump SPAC deal values firm at $10 billion despite no known revenue or product","url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","media":"CNN Business","summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","content":"New York (CNN Business)&nbsp;-&nbsp;Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media &amp; Technology Group(TMTG) posted an&nbsp;investor presentation&nbsp;last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman&nbsp;Devin Nunes, has&nbsp;no business experience in technology or social media. And&nbsp;federal regulators are investigating&nbsp;the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire&nbsp;and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting&nbsp;regulators to warn investors&nbsp;not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe&nbsp;Trump SPAC instantly set off a frenzy&nbsp;on Wall Street -- even though little was known about the new entity. Shares of Digital World&nbsp;skyrocketed as much as 1,657%&nbsp;in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a&nbsp;Twitter thread&nbsp;over the weekend. Legum pointed out that the&nbsp;language on the infrastructure slide&nbsp;is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on&nbsp;Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of&nbsp;Citrix.\nLikewise, the definition of a client matches what is found on the website of&nbsp;Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal&nbsp;to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a&nbsp;filing&nbsp;it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the&nbsp;New York Times reported&nbsp;that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted&nbsp;Senator Elizabeth Warren to call for the SEC to investigate&nbsp;whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a&nbsp;former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His&nbsp;Congressional website&nbsp;says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump SPAC deal values firm at $10 billion despite no known revenue or product</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1144559089","content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":607206393,"gmtCreate":1639539760299,"gmtModify":1639539999923,"author":{"id":"3574326723774097","authorId":"3574326723774097","name":"Gackky","avatar":"https://static.tigerbbs.com/5898b44bf5a31bf2b9d4e37227ed8177","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3574326723774097","authorIdStr":"3574326723774097"},"htmlText":"hype and FOMO and dumb money","listText":"hype and FOMO and dumb money","text":"hype and FOMO and dumb money","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/607206393","repostId":1144559089,"repostType":4,"repost":{"id":"1144559089","kind":"news","pubTimestamp":1639537425,"share":"https://www.laohu8.com/m/news/1144559089?lang=&edition=full","pubTime":"2021-12-15 11:03","market":"us","language":"en","title":"Trump SPAC deal values firm at $10 billion despite no known revenue or product","url":"https://stock-news.laohu8.com/highlight/detail?id=1144559089","media":"CNN Business","summary":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or ","content":"New York (CNN Business)&nbsp;-&nbsp;Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media &amp; Technology Group(TMTG) posted an&nbsp;investor presentation&nbsp;last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman&nbsp;Devin Nunes, has&nbsp;no business experience in technology or social media. And&nbsp;federal regulators are investigating&nbsp;the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire&nbsp;and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting&nbsp;regulators to warn investors&nbsp;not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe&nbsp;Trump SPAC instantly set off a frenzy&nbsp;on Wall Street -- even though little was known about the new entity. Shares of Digital World&nbsp;skyrocketed as much as 1,657%&nbsp;in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a&nbsp;Twitter thread&nbsp;over the weekend. Legum pointed out that the&nbsp;language on the infrastructure slide&nbsp;is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on&nbsp;Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of&nbsp;Citrix.\nLikewise, the definition of a client matches what is found on the website of&nbsp;Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal&nbsp;to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a&nbsp;filing&nbsp;it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the&nbsp;New York Times reported&nbsp;that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted&nbsp;Senator Elizabeth Warren to call for the SEC to investigate&nbsp;whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a&nbsp;former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His&nbsp;Congressional website&nbsp;says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Trump SPAC deal values firm at $10 billion despite no known revenue or product</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTrump SPAC deal values firm at $10 billion despite no known revenue or product\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-12-15 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html>CNN Business</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nNew York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears...\n\n<a href=\"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://edition.cnn.com/2021/12/14/investing/trump-spac-dwac/index.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1144559089","content_text":"New York (CNN Business) - Former President Donald Trump's new media venture has no known revenue or product.\nTrump Media & Technology Group(TMTG) posted an investor presentation last week that appears to contain errors and seems to have been partially copied and pasted from the internet. Bizarrely, one slide defines a user as a \"sales representative who travels to visit customers,\" a definition that makes little sense given that this is a media company, not a sales platform.\nTMTG's incoming CEO, Republican Congressman Devin Nunes, has no business experience in technology or social media. And federal regulators are investigating the deal to bring the media venture public.\nDespite these red flags, TMTG is creating enormous buzz among at least some investors and has achieved an implied valuation above $10 billion, according to Renaissance Capital.\n\"This is weird and murky,\" Matthew Tuttle, CEO of Tuttle Capital Management LLC, told CNN. \"I've never seen anything like this before. And I probably never will again.\"\nTMTG, chaired by the former president, simultaneously revealed a deal to go public through a merger with Digital World Acquisition Corp., which is a type of a shell company known as a SPAC, or a Special Purpose Acquisition Company.SPACs raise money that must be used to acquire and bring public private firms. Essentially they are blank-check firms that exist solely to find suitable merger partners.\nSPACs have become very popular on Wall Street, in part because they can save time and money compared with traditional initial public offerings.Celebrities including Alex Rodriguez, Larry Kudlow and Shaquille O'Neal have gotten involved in SPACs, prompting regulators to warn investors not to invest in a SPAC just because a celebrity is involved.\nImplied valuation above $11 billion\nThe Trump SPAC instantly set off a frenzy on Wall Street -- even though little was known about the new entity. Shares of Digital World skyrocketed as much as 1,657% in the days after the deal was announced before eventually retreating.\n\"This is now the meme stock of all meme stocks,\" said Tuttle, whose firm issues ETFs, including several that focus on the SPAC market. \"Take all of the buzz going around about AMC and GameStop in January and February and multiple it by a million and that's what this is.\"\nBased on Digital World's Monday closing price of $50.49, the SPAC deal implies a valuation on TMTG at about $10.5 billion, according to Renaissance Capital, which provides IPO-focused ETFs and pre-IPO research. That implied valuation includes warrants, private placements and a deal to raise $1 billion upon the completion of the SPAC merger.\nTuttle, who said his firm briefly owned shares in Digital World before they skyrocketed, called the valuation \"somewhat frightening\" and \"ridiculous.\"\n\"Treat this like a gamble, because it definitely is,\" said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. \"It seems like a lot of the valuation is based on hype and the personal popularity of Donald Trump. That's not a sound investment rationale.\"\n'It didn't really make sense'\nOne of the many unusual aspects of the Trump SPAC is that the parties initially released very little concrete information about the fundamentals of the business.\nNew documents were released last week, but they raise more questions than answers.\nA 38-slide presentation filed by TMTG includes a page titled \"Infrastructure\" that defines a user as a \"person, or organization, or system that has one or more roles that initiates or interacts with activities.\" It goes on to say that includes a \"sales representative who travels to visit customers.\"\nThat definition is hard to reconcile with the fact that TMTG is supposed to be a conservative media company, not a platform that caters to traveling salespeople.\n\"It didn't really make sense,\" Kennedy said. \"A better example of a user would be 'US residents with internet access' or 'one of the 89 million followers of Trump's former Twitter account.'\"\nJudd Legum, who writes the political newsletter Popular Information, flagged the definition of a \"user\" in a Twitter thread over the weekend. Legum pointed out that the language on the infrastructure slide is just \"cut-and-pasted from other sites.\"\nIndeed, the slide's description of database servers matches what is written on a page last updated in 2016 on Techopedia, a website that includes a tech jargon dictionary. The definition of load balancer matches what is listed on a page on the website of Citrix.\nLikewise, the definition of a client matches what is found on the website of Cloudflare.\n\"In other words, not only does this company not have any technical infrastructure,\" Legum wrote, \"it could not be bothered to even write its own slide of what the infrastructure will be.\"\nTMTG did not respond to requests for comment.\n'Serious errors'\nBut these are not the only oddities in the investor presentation.\nKennedy, the Renaissance Capital strategist, notes that slide 5 shows the PIPE (private investment in public equity) potentially converting into 13.7 million shares, even though other filings indicate the minimum is actually 29.8 million. Another line in the same slide appears to have another error about the number of shares to be held by TMTG stockholders, Kennedy said.\nAnother unusual element of the presentation is that slide 21 in the deck lists first names and last initials only of the members of TMTG's technology team.\n\"I believe they're moving very quickly to capitalize on the current share price, so that could explain some of the errors, inconsistencies and other abnormalities,\" Kennedy said.\nTMTG is not the only company in a SPAC deal to have typos and errors in filings. Kennedy said in the last year, he's noticed more of these issues creeping into investor presentations.\n\"This is a bit more. It's an error regarding the valuation and very fundamental components of the deal. These are more serious errors than we normally see,\" he said.\nProjecting just $1 million in revenue next year\nThe slide deck lists an array of financial projections, including that Truth Social could reach 81 million users by 2026 and generate $13.50 in average revenue per user. The presentation states that TMTG+, the planned streaming app, is projected to reach 40 million total subscribers by 2025 and generate $9 in average monthly fees per user.\n\"TMTG aspires to create a media powerhouse to rival the liberal media consortium and fight back against the 'Big Tech' companies of Silicon Valley, who have used their unilateral power to silence opposing voices in America,\" TMTG says in the presentation.\nThe company said TMTG+ could deliver a price point close to that of Netflix \"given President Trump's highly enthused base.\"\nYet the presentation also concedes that the business doesn't amount to much at the moment.\nOne slide indicates management projects to generate just $1 million in revenue next year, based solely on Truth Social.\n\"This is extremely high risk. It is really buying a pig in a poke,\" said Jonathan Macey, a professor at Yale Law School. \"But apparently a lot of people seem to believe that something can be made of this because the valuation really is soaring.\"\nTMTG recently announced a deal to raise $1 billion upon the completion of its SPAC agreement.\nHowever, the company did not disclose who the investors committing $1 billion are, other than to say they are a \"diverse group\" of institutional investors.\nRenaissance's Kennedy said the terms of the $1 billion investment are \"unusually favorable\" to the investors, granting them preferred shares that convert to common shares at a steep discount.\nSEC and FINRA are investigating\nThe Trump SPAC is also the subject of regulatory scrutiny.\nLast week, Digital World said in a filing it received a document and information request from the Securities and Exchange Commission in early November. Among other items, Digital World said the SEC request sought documents and communications between Digital World and Trump Media and Technology Group.\nDigital World also said Wall Street's self-regulator, the Financial Industry Regulatory Authority, or FINRA, is looking into trading prior to the deal's announcement.\nIn late October, the New York Times reported that Trump began discussing a merger with Digital World long before the blank-check company went public and before such talks were disclosed to investors.\nThat prompted Senator Elizabeth Warren to call for the SEC to investigate whether any laws were broken by Digital World because the company repeatedly told shareholders that it had not held substantive talks with a target company.\nDevin Nunes is the new CEO\nTrump's own role in the SPAC deal is unclear. The filings do not clearly indicate the former president's role, beyond describing him as the chairman of TMTG. Trump did not respond to requests for comment.\nTMTG reached a deal to go public in October despite not having a CEO. That vacancy has since been filled by Nunes, the California Republican who recently announced he will leave the House to join the Trump social media firm.\nYet Nunes, a former cattle and dairy farmer, does not appear to have any business experience in social media or technology. His Congressional website says he has a bachelor's degree in agricultural business and a master's in agriculture. Nunes did not respond to requests for comment.\nThe fact that TMTG won't be run by an executive with a proven track record in technology or social media adds to the risky nature of the venture. Countless startups with far more experienced executives have tried and failed to crack this market.\n\"It's difficult to build a social media company. Even after Twitter generated hundreds of millions of users, there were doubts about the company,\" Kennedy said. \"You can throw money at these projects, but it's hard to build a sticky platform.\"","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6989202,"gmtCreate":1639549149396,"gmtModify":1639549149396,"authorId":3566385558470298,"author":{"id":3566385558470298,"idStr":"3566385558470298","authorId":3566385558470298,"name":"Venus_M","avatar":"https://static.tigerbbs.com/525433622d774840840ddaacaf2281d2","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":607206393,"type":1,"supId":0,"prevId":0,"content":"that's the game you love to play.&nbsp; admit it [Happy]","text":"that's the game you love to play.&nbsp; admit it [Happy]","html":"that's the game you love to play.&nbsp; admit it [Happy]"},{"id":6988042,"gmtCreate":1639540254736,"gmtModify":1639540254829,"authorId":3575091423649914,"author":{"id":3575091423649914,"idStr":"3575091423649914","authorId":3575091423649914,"name":"kungpao","avatar":"https://static.tigerbbs.com/f469169ddf2122a6445250fcaea5382c","vip":1,"crmLevel":7,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":607206393,"type":1,"supId":0,"prevId":0,"content":"LOL so true","text":"LOL so true","html":"LOL so true"}],"langContent":"CN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":128,"commentSize":9,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}