Media

Trump media company subpoenaed in federal criminal probe of SPAC deal – CNBC

Published

1 month ago

July 4, 2022

Harry Miller

In this article

DWAC

Former U.S. President Donald Trump gives the keynote address at the Faith & Freedom Coalition during their annual “Road To Majority Policy Conference” at the Gaylord Opryland Resort & Convention Center June 17, 2022 in Nashville, Tennessee.

Seth Herald | Getty Images

Donald Trump’s media company was subpoenaed by a federal grand jury in connection with a criminal probe, according to the company with which the former president’s firm plans to merge.

Digital World Acquisition Corp. said in a filing Friday that Trump Media and Technology Group received a subpoena from the grand jury in Manhattan on Thursday. The Trump company also received a subpoena from the Securities and Exchange Commission regarding a civil probe on Monday, DWAC said.

DWAC also said some current and former TMTG employees have also recently received grand jury subpoenas. Later Friday, TMTG said it would comply with the subpoenas, and that none of them were directed at its chairman, Trump, or CEO, former U.S. Rep. Devin Nunes.

The filing came days after DWAC said the government investigations could delay or even prevent its merger with Trump’s newly formed company, which includes Truth Social, a social media app intended to be an alternative to Twitter.

Neither TMTG nor a spokeswoman for Trump immediately responded to CNBC’s requests for comment.

The Justice Department and the SEC, which regulates the stock market, are investigating the deal between DWAC and Trump Media. By merging with DWAC, which is a kind of shell company called a special purpose acquisition company, or SPAC, Trump’s firm would gain access to potentially billions of dollars on public equities markets.

Trump established Truth Social months after Twitter banned him for his tweets on Jan. 6, 2021, when hundreds of his supporters stormed the U.S. Capitol in a bid to overturn Joe Biden’s victory in the presidential election. Parent company Trump Media was incorporated in February 2021, weeks after Trump left office. The company’s CEO, Nunes, is one of the former president’s most ardent loyalists in the Republican Party. Trump is also considering whether to run for president in the 2024 election.

Trump has continued to spread the lie that the election was stolen from him. His alleged involvement in the Jan. 6 insurrection is being probed by a House select committee that has accused the former president of being at the center of a multipronged conspiracy to block the peaceful transfer of power to Biden.

Early criticism of the Trump-DWAC deal came from Sen. Elizabeth Warren, D-Mass. In calling for an investigation, she wrote to SEC Chair Gary Gensler in November, telling him that DWAC “may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information in [SEC] filing and other public statements.” The lawmaker’s request came shortly after The New York Times published a report that said the deal might have violated securities laws and regulations.

DWAC shares are far off their highs, closing Friday at $24.20. The stock had surged above $90 in October, after the deal with Trump’s group was announced.

DWAC on Monday revealed in a securities filing that it learned June 16 that each member of its board of directors received subpoenas from the same federal grand jury.

The grand jury sought documents similar to those the SEC already requested as part of its civil probe, DWAC said. The company itself was served with a subpoena a week ago with similar requests, along with other requests relating to communications, individuals and information involving Rocket One Capital.

DWAC also revealed Monday that a board member, Bruce J. Garelick, had told management that he would quit the board during the previous week. Garelick said his resignation “was not the result of any disagreement with Digital World’s operations, policies or practices,” according to the company filing.

— CNBC’s Kevin Breuninger and Thomas Franck contributed to this story.

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Netflix is not in deep trouble. It's becoming a media company – CNN

Published

3 hours ago

August 7, 2022

Harry Miller

New York (CNN Business)Netflix has had a terrible 2022. In April, it said it lost subscribers for the first time since 2011. Its stock has tumbled more than 60% so far this year.

Yet its recent struggles may not be the start of a downward spiral or the beginning of the end for the streaming giant. Rather, it’s a sign that Netflix is becoming a more traditional media company.

Netflix (NFLX) was originally valued as a Big Tech company, part of the Wall Street acronym, “FAANG,” which stood for Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix and Google (GOOG). Wall Street once valued the company at about $300 billion — a number on par with many Big Tech companies that Netflix’s business model ultimately couldn’t live up to.

“I think Netflix was extremely overvalued,” Julia Alexander, director of strategy at Parrot Analytics, told CNN Business. “Unlike those companies that have different tentacles, Netflix does not have a lot of tentacles.”

But Netflix was never really a tech company.

Yes, it relied on subscriber growth like many companies in the tech world, but its subscriber growth was built on having films and TV shows that people wanted to watch and pay for. That’s more a like a studio in Hollywood than a tech company in Silicon Valley.

Netflix looked a lot more like a tech company than, say, Disney, Comcast, Paramount or CNN parent company Warner Bros. Discovery. But as those traditional media companies start to look a lot more like Netflix, Netflix in turn is starting to take page out of its rivals’ playbooks: It’s going to start serving ads and it has been releasing some shows over the course of weeks and months rather than all at once.

Netflix has said that its cheaper ad tier and clampdown on password sharing may come next year. It’s partnering with Microsoft (MSFT) for its ad business.

“I think in many ways the moves Netflix are making suggest a transition from tech company to media company,” Andrew Hare, a senior vice president of research at Magid, told CNN Business. “With the introduction of ads, crackdown on password sharing, marquee shows like ‘Stranger Things’ experimenting with a staggered release, we are seeing Netflix looking more like a traditional media company every day.”

Hare added that Netflix’s former business strategy, which was “once sacrosanct is now being thrown out the window.”

“Netflix once forced Hollywood deeply out of its comfort zone. They brought streaming to the American living room,” he said. “Now it appears some more conventional practices could be what Netflix needs.”

At Netflix right now, “a lot of these strategic moves are being made as they mature and move into the next phase as a company,” noted Hare. That includes focusing on cash flow and revenue rather than just growth.

“In other words, old school business,” he said.

— CNN Business’ Moss Cohen contributed to this report.

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City of Brandon – August 7th Media Release – City of Brandon –

Published

4 hours ago

August 7, 2022

Harry Miller

For the last 24 hours:

Drinking in Public Leads to Multiple Criminal Charges:

At about 11:40 AM Saturday morning, it was reported that a male subject was acting bizarrely in and around the 700 block Rosser Ave. When located in the area, the 21 year-old was drinking an alcoholic beverage so was detained under the LGCCA. He was subsequently found to be in breach of multiple conditions of two separate Probation Orders. Search incident to arrest revealed a machete in his backpack. He disclosed taking an unknown quantity of unknown pills, so was released on appropriate police imposed conditions as he was receiving medical assessment and treatment. He is to appear in Court on October 3^rd, facing one count of possessing a weapon and six counts of failing to comply with a Probation Order.

Break & Enters:

An unlocked attached residential garage on Falcon Crescent was entered overnight on Friday and tools were stolen. Some of those were recovered strewn across neighbouring property.

A resident in the 300 block 27^th Street reported that the detached garage had been forcibly entered overnight Thursday – Friday. The complainant was unsure if anything had been stolen but the walk-through door frame had been damaged during the incident.

Theft With Threat:

At about 3:50 PM Saturday afternoon, it was reported that a resident in the 700 block 20^th Street had been robbed of a bicycle approx. 20 minutes prior, while in his back yard. Police attended and spoke with the victim who related that an unknown male came into his back yard and stole an old bicycle of no value, and brandished a knife while doing so. The suspect left without further incident. The suspect was described as Indigenous in appearance, 6’5”, skinny, wearing a blue hoodie, black bandana and hat. The knife was pulled from the front right pants’ pocket.

Arrest Warrants:

A 28 year-old female was encountered in the 700 block 18^th Street Saturday evening, with personal effects strewn about a business vestibule. A records query revealed a warrant for arrest for failing to comply with a Probation Order. She was arrested and released on scene with a court date of October 3^rd.

Just before midnight Saturday night, Brandon RCMP advised having a 51 year-old male in custody on the strength of a BPS held warrant for arrest for sexual assault. RCMP had attended to a complaint in Glenboro and encountered the accused. He is held in custody and will appear before the court later today.

Motor Vehicle Collision With Injuries:

At 11:15 PM Saturday night, 911 reported a two vehicle collision at the intersection of Russell Street and Madison Crescent. Two occupants were stuck in a vehicle that had rolled over onto its’ side. The investigation revealed that the driver of the rolled vehicle failed to stop at the stop sign. That driver was transported to BRHC by EMS with non-life threatening injuries. The second driver was uninjured.

Others:

Several people were detained from separate incidents, for their own safety or to prevent a breach of the peace, due to their level of intoxication. They will be held in custody until sober enough to care for themselves.

RELEASE AUTHORIZED BY:

A/Staff Sergeant Dallas Lockhart, #101

C Platoon

~~~~~~~~~~~~~~~~~

Anyone with information on any unsolved crime is asked to call Brandon Crime Stoppers at 204-727-(TIPS) 8477, www.brandoncrimestoppers.com or by texting BCSTIP and your message to CRIMES (274637). Crime Stoppers pays up to $2000.00 cash for information that leads to the solution of a crime.

CRIME STOPPERS 204-727-TIPS

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