March 22 (Reuters) - Shares of Digital World Acquisition

Corp ( DWAC ) fell 3.5% on Friday as investors resorted to

profit-taking after shareholders of the blank-check firm voted

in favor of its merger with former U.S. President Donald Trump's

media and technology company.

The shares had briefly risen after the vote on the deal that

faces uncertainty over a lawsuit and fears of the former U.S.

President selling a large portion of his stake in Trump Media &

Technology Group (TMTG) - the parent of Trump's social media

firm Truth Social.

"I think a lot of investors are selling on the news .... now

that it (deal) is happening, some of them are taking profits,"

said Michael Ashley Schulman, chief investment officer at

Running Point Capital.

The vote was the final step in completing the merger that

would value TMTG at as much as $8.6 billion.

Schulman added that the possibility of Trump selling shares

after the lock-up period ends is having a negative effect on the

stock.

Digital World said in a regulatory filing last month that

Trump may divest his stake in Truth Social, valued at about $3.6

billion, and cease any involvement in its management based on

how his bid for president goes.

The Republican presidential candidate has been grappling

with the financial fallout of a slew of legal cases against him.

Among other hurdles the deal is facing, Digital World's

former CEO Patrick Orlando and former Trump business associates

Andy Litinsky and Wes Moss have filed lawsuits, claiming they

were entitled to more shares for their contributions to the

merger.

The U.S. Securities and Exchange Commission in February

allowed the merger more than two years after it was announced.