The potential merger between Digital World Acquisition Corp. and Trump Media & Technology Group has investors on edge as they await the outcome of Friday's shareholder vote. If approved, the former president stands to own the majority of the combined company, with a stake potentially valued at over $3 billion based on Digital World's closing stock price. However, Trump may not be able to cash out immediately due to a lock-up provision.

Despite the anticipation surrounding the merger, Digital World's stock has experienced volatility, with shares falling as much as 12% after the deal was cleared before bouncing back. The company's regulatory filings also highlight risks for investors, including Trump's controlling stake and the high failure rate of new social media platforms. Trump Media's financials show a loss of $49 million in the first nine months of last year, raising concerns about its profitability.

The merger comes as Trump continues to promote Truth Social as a platform for his message, following his ban from major social platforms after the Jan. 6 insurrection. With an estimated 5 million active users in February, Truth Social faces competition from larger platforms like TikTok and Facebook, as well as challenges in attracting mainstream advertisers.

As Trump's social media business prepares to go public, it will be required to disclose more details about its finances and operations. The outcome of Friday's shareholder vote will determine the next steps for Trump Media and its flagship product, Truth Social, in the competitive social media landscape.