Shares in Trump SPAC surge after Ron DeSantis drops 2024 presidential bid

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Shares in Trump SPAC surge after Ron DeSantis drops 2024 presidential bid

Investing.com -- Shares in blank-check firm Digital World Acquisition Corp (NASDAQ: DWAC ) jumped in early U.S. trading on Monday, after Donald Trump's bid to become the Republican nominee for this year's presidential election was bolstered by Florida Governor Ron DeSantis' decision over the weekend to suspend his candidacy.

Digital World Acquisition Corp is a so-called special purpose acquisition vehicle, or SPAC, vying to take the former president's media company, Trump Media & Technology Group, public. TMTG is known as the operator of social media platform Truth Social.

A SPAC is typically a publicly-traded shell company that aims to merge with a private business interested in a relatively quick listing. DWAC first announced its intention to join with TMTG in 2021, although the deal has encountered multiple delays. The company said in December that it hopes to close the merger as soon as the first quarter of 2024.

On Sunday, DeSantis dropped his presidential bid and endorsed Trump, saying he could no longer see a "clear path to victory" for his campaign. The move leaves Trump facing only one more major Republican challenger, ex-United Nations Ambassador and former South Carolina Governor Nikki Haley.

The next major test for Trump's re-election bid comes on Tuesday, when voters in New Hampshire are due to cast their ballots in the state's closely-watched presidential primary. According to a polling average from 538, Trump has the support of 49.8% of likely voters in New Hampshire, while Haley's has the backing of 36.1%.

Elsewhere on Monday, shares in Rumble Inc (NASDAQ: RUM ), a video sharing platform popular among conservatives, soared. Phunware (NASDAQ: PHUN ), a software developer hired by Trump's 2020 presidential re-election campaign to build a phone app, also rallied.

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