Donald Trump's social media company and some of its employees received subpoenas from both a federal grand jury and securities regulators, according to a public disclosure, possibly delaying or even killing a deal promising a cash infusion needed to take on Twitter.
Trump Media and Technology Group received subpoenas from a grand jury in New York and the Securities and Exchange Commission, according to a securities document filed by Digital World Acquisition Corp. On Friday. Digital World has plans to buy Trump Media, releasing USD 1.3 billion for its fledging business, but the deal is unlikely to be done during two legal probes. Trump, who is Trump Media's chairman, was not among the employees who received subpoenas, according to a Trump Media statement.
On Monday, Digital World announced it had received subpoenas from the same grand jury convened by the Manhattan US Attorney's Office. Digital World has been under investigation by the SEC for possible violations for months, a development that has weighed on the stock.
Digital World stock closed Friday at USD 5.78, down 25% in a week. It had been at over USD 100 last year after the company announced it had a deal to buy the former president's social media firm.