Former U.S. Pres. Donald Trump’s social media company, along with several of its employees, received subpoenas imposed by a federal grand jury and securities regulators, as per a public disclosure rolled out on Friday. This would likely delay or even kill a deal that promises a cash infusion needed to take on social media platform Twitter.
As per Trump Media’s statement, the former president, who also serves as the company’s chairman, was not among the people who have gotten subpoenas.
Digital World announced on Monday that it had received subpoenas from the grand jury convened by the U.S attorney’s office in Manhattan. The SEC had also been probing the said company for likely violations for several months, a development that had impacted the stock.
On Friday, the stock of Digital World closed at $5.78, which was down 25% from the week prior. Its stock had been over $100 back in 2021 following the announcement of a deal that it would buy Trump’s social media firm.
The SEC has been investigating whether the said company went against rules by undergoing substantial talks about buying the former president’s company starting early last year prior to its stock being sold to the public for the first time in September. A few weeks after this, the company announced that it plans to buy Trump’s company.