Donald Trump's $3 Billion Windfall: Investors Approve Deal to Make Trump Media a Publicly Traded Company
Donald Trump is set to become $3 billion richer after investors greenlit a deal that would transform Truth Social owner Trump Media into a publicly traded company.
Donald Trump is set to become $3 billion richer after investors greenlit a deal that would transform Truth Social owner Trump Media into a publicly traded company, RadarOnline.com has learned.
The sudden development marked a significant milestone for the much-delayed merger – promising substantial financial gains for ex-President Trump amid his mounting legal and financial challenges.
Shareholders at Digital World Acquisition Corporation voted in favor of merging with Trump Media on Friday.
According to CNN, shareholders at Digital World Acquisition Corporation voted in favor of merging with Trump Media on Friday – paving the way for the creation of Trump Media & Technology Group.
The company, which is set to be traded under the ticker DJT, would reportedly encompass Trump's struggling social media platform, Truth Social.
Investors approved the merger after years of legal and regulatory hurdles, and the move positioned Trump to become a dominant shareholder with shares valued at over $3 billion.
Meanwhile, the merger’s approval signaled a potential closure as early as next week – setting the stage for trading under the new name and ticker within mere days of the shareholder nod.
The company, which is set to be traded under the ticker DJT, would reportedly encompass Trump's struggling social media platform, Truth Social.
But despite the apparent $3 billion windfall, sources cautioned that realizing the purported gains from Trump's stake would prove challenging.
The high valuation of Trump Media, juxtaposed with minimal revenue and the dwindling user base of Truth Social, cast doubts on the company's sustainability and market positioning.
The stock's lack of liquidity also posed a major hurdle for Trump – limiting his ability to monetize the shares sooner rather than later.
With the stock currently seen as vastly overvalued, the practicality of converting paper gains to actual cash remains uncertain.
Despite the apparent $3 billion windfall, sources cautioned that realizing the purported gains from Trump's stake would prove challenging.
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Market analysts also highlighted the precarious nature of Trump's stake – emphasizing that the current valuation of Trump Media far exceeded its fundamental value.
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Concerns over Trump's ability to sell or pledge the stock, compounded by restrictions on insiders' share sale for six months post-merger, added further complexity to the ex-president’s financial predicament.
While the merger approval signified a major milestone, the practicality of transforming Trump's stock holdings into cash will remain a significant dilemma for the cash-strapped ex-president.
The merger between Trump Media and Digital World Acquisition Corporation came as the embattled ex-president struggles to find $464 million to appeal the massive civil fraud judgment against him in New York.
As RadarOnline.com previously reported, the merger between Trump Media and Digital World Acquisition Corporation came as the embattled ex-president struggles to find $464 million to appeal the massive civil fraud judgment against him in New York.
Trump has until Monday to post the nearly $500 million appellate bond before New York Attorney General Letitia James can begin seizing the ex-president’s assets.
While Trump’s lawyers already announced that the former president was unable to secure a loan to cover the $464 million from over 30 lenders, Trump himself complained that he would be “forced to sell great assets” at “fire sale prices” to make up the money needed to cover the appeal.
It is unlikely that Trump’s stock gains from the Trump Media and Digital World Acquisition Corporation merger would be realized before his appeal deadline in New York on Monday.
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