Trump, who still holds sway over many Republican voters, has hinted at the possibility of running for president again in 2024. Some members of the GOP, such as retiring Sen. Pat Toomey, of Pennsylvania, have urged their party not to nominate Trump, who has repeatedly lied about the outcome of the 2020 election.
News of Trump Media Technology Group’s planned merger with DWAC first surfaced Wednesday night. Trump also said then he intends to launch his own social media network called “TRUTH Social,” suggesting the platform will “stand up to the tyranny of Big Tech.”
DWAC is what’s known as a blank check company, which raises capital through an IPO with the goal of using those proceeds to acquire a private firm and bring it to the public markets. While SPACs have been around for a while, they surged in popularity last year. After a record start to 2021, the SPAC trend has lost its luster.
It’s not entirely clear what’s behind the explosive move in DWAC shares, but the stock has become incredibly popular on Reddit’s WallStreetBets forum. The online message board gained notoriety earlier this year when its members flocked to GameStop, AMC Entertainment and other companies, establishing those securities as so-called meme stocks.
Despite wanting its price to go up, Scaramucci said he’s not planning on investing in DWAC at all.
“I am not into media disinformation and garbage propaganda, so no, I would not buy it. I try to stay away from those things,” said Scaramucci, who also encouraged any Wall Street firms that owned DWAC before it became linked to Trump to dump their holdings. Some already have done that.
Representatives for Trump did not immediately respond to CNBC’s request for comment on Scaramucci’s remarks.
Scaramucci started SkyBridge in 2005 and had a prior stop at Goldman Sachs, where he worked in the investment bank’s private wealth management group.
He worked on Trump’s presidential transition team in 2016, before leaving Wall Street to become White House communications director. He was dismissed from that role after only 10 days, when The New Yorker published a piece on an expletive-filled rant Scaramucci delivered to a reporter at the magazine.
Scaramucci has donated to Republicans recently, including in November to the campaigns of now-former Sens. David Perdue and Kelly Loeffler, both of Georgia, according to Federal Election Commission records. Perdue and Loeffler lost in runoff elections to Democrats Jon Ossoff and Raphael Warnock, giving the Democrats control of the Senate.