Former US President Donald Trump could lose millions of dollars if he resumes tweeting after new Twitter owner Elon Musk reinstates his account.
Despite Musk’s apparent attempts to get Trump to use the social media platform again, the former leader has insisted he is content to stick with his own site, Truth Social, which he founded after it was banned by major tech platforms last year.
Mr. Trump’s Twitter account reinstatement comes at a pivotal juncture for the 45th president, who recently announced his intention to run again for the White House. New York Post reports.
Meanwhile, Truth Social is the proprietary property of Trump Media & Technology Group (TMTG), which is owned by the former president.
TMTG is tied into an agreement with Digital World Acquisition Corp., a special purpose acquisition company (SPAC), which was set up to take Mr. Trump’s company public.
But if Trump’s company were to go public only to have him diminish the value of Truth Social by resuming his activities on Twitter — thus giving his tens of millions of followers a reason to abandon the fledgling social media platform — shareholders could sue him, a legal expert told Semafor.
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If it were to appear, in retrospect, he never had that intention [of remaining off Twitter] But he just wanted to convince people that they should move on and shut down [the SPAC deal] It’s kind of like a textbook securities fraud lawsuit, Columbia Law School professor Eric Talley told Semaphore.
Trump’s return to Twitter without facing any legal repercussions is conceivable, but only if he prioritizes his enforcement.
According to an SEC filing by TMTG, the billionaire is “generally obligated to post any social media post on TruthSocial and may not post the same post on another social media site for six hours.”
The deal with SPAC also allows Mr. Trump to use a “personal account” to make posts “related to political messages, political fundraising, or voting efforts on any social media site at any time.”
During a video address to a meeting of a Republican Jewish group in Las Vegas on Saturday, Trump said he was aware of Musk’s poll but saw “a lot of problems on Twitter.”
“I heard we got a big vote to also come back to Twitter. I don’t see it because I don’t see any reason for that.
“It may work, it may not work,” the former president added, apparently referring to recent internal turmoil at Twitter.
Despite his bravery, the Truth Social channel may collapse for reasons that have nothing to do with Trump’s Twitter habits.
Federal regulators are investigating whether Mr. Trump’s company and DWAC misled investors by improperly negotiating with each other about the merger.
last week, the post It reported that Patrick Orlando, CEO of Digital World Acquisition Corp., had personally courted small retail investors in a desperate attempt to keep the deal alive.
Orlando has been calling investors with no more than 20 shares each to get them to vote in favor of the deal, according to sources close to the situation.
These people add that the CEO, who was forced to reschedule the vote six times, now believes he has the votes needed to complete the merger. Orlando is said to have scheduled a live interview with the IPO Edge media service for November 22, the day of the shareholder vote.
It had previously put $3 million (A4.5 million dollars) into the deal in September to prevent DWAC from liquidating after it failed to get a vote approving the extension.
If he doesn’t win the Nov. 22 vote, Orlando could deposit another $3 million (A4.5 million) by Dec. 8 to keep DWAC running for another three months while it waits for SEC approval to buy Truth Social.
Additional reporting by Lydia Moynihan and Josh Kosman
This article originally appeared in the New York Post and was reproduced with permission
Originally published as The real reason Donald Trump isn’t coming back to Twitter