Donald Trump’s social media firm was news to some of his investors – and at least one pulled out when he learned his money was now tied to the former president.
“Many investors are grappling with difficult questions about how to integrate their values into their work,” hedge fund manager Boaz Weinstein told The New York Times in a statement. “For us, it was not a close call. ”
The newspaper said Weinstein’s Saba Capital had been a major investor in Digital World, a Special Purpose Acquisition Company (SPAC) formed with the aim of acquiring another company.
As is common in PSPC agreements, investors invest their money before the acquisition target is chosen. When Weinstein found out it would be with Trump’s firm, he bailed out.
Trump announced the new company this week, saying it would launch a right-wing rival to Twitter called Truth Social.
The company’s shares more than tripled on Thursday, the day after the deal was announced, but an anonymous investor who owned 10% of the company told the Financial Times he sold everything as soon as he could. .
“The idea that I would help [Trump] starting a fake news business called Truth makes me want to throw up, ”he said.
It is not clear whether this investor was Weinstein as well.
Another big investor seemed much happier with the deal.
“When you partner with the right teams of sponsors who have a clear vision of their goals, good things can happen quickly,” David Puritz of Shaolin Capital Management told the newspaper.
Reuters notes that the company was founded by Patrick Orlando, who has trained at least four other PSPCs and has plans for two more, but so far none have resulted in a deal.