Shares of Digital World Acquisition Corp.
were rocketing 17% in after-hours trading Friday after Tesla Inc.
Chief Executive Elon Musk said he was terminating his $44 billion deal for Twitter Inc.
Digital World is a special-purpose acquisition corporation buying the company that operates President Donald Trump’s Truth Social business, which bills itself as a social network that “encourages an open, free, and honest global conversation without discriminating on the basis of political ideology.” Trump was banned from Twitter in the wake of Jan. 6, 2021, but Musk had signaled after initially agreeing to buy the company that he would look to reverse that ban and that he more generally disagreed with permanent bans. He had also indicated that he would take a less strict approach to content moderation. DWAC’s aftermarket rally Friday suggests that investors see Twitter as less threatening to Truth Social as a public company not controlled by Musk. DWAC shares have lost 47% over the past three months, as Twitter shares have dropped 20% and as the S&P 500
has fallen 13%.