Shareholders of Digital World Acquisition Corp. recently voted in favor of a merger with Donald Trump’s social media company, which could potentially result in Trump making a substantial profit of over $3 billion. This deal has been in the works for approximately 2½ years, with plans to merge with Trump Media & Technology Group, the owner of the Truth Social app platform.
The approval of the merger comes amidst potential legal troubles for Trump, as the New York Attorney General is expected to start trying to collect a $454 million civil fraud judgment against him. The newly combined company, known as Trump Media, is set to be publicly traded under the stock symbol DJT, reflecting Trump’s initials. However, the share price of Digital World Acquisition Corp. experienced a significant decline following the shareholder vote, which could impact Trump’s shares in the merged company.
Despite the possibility of Trump’s shares being valued at $3 billion or more, there are restrictions in place that prevent him from immediately cashing out. Trump will be restricted from selling shares for at least six months, and there is no guarantee that the trading price of Trump Media shares will remain consistent with Digital World Acquisition Corp.’s price. The board of directors, which may include individuals closely associated with Trump, could potentially allow Trump to sell shares earlier than the designated lockup period.
Trump is currently facing significant legal expenses from both criminal and civil cases, with judgments exceeding half a billion dollars in various civil suits. He has sought legal measures, such as requesting a stay on the $454 million fraud judgment, as he attempts to appeal the verdict. However, Trump’s legal team has indicated that he lacks the necessary cash to provide as collateral for a bond to secure the judgment and prevent collection efforts by the New York Attorney General.
The merger between Digital World Acquisition Corp. and Trump Media & Technology Group presents a lucrative opportunity for Donald Trump, potentially resulting in a substantial financial gain. However, this opportunity is coupled with legal challenges and uncertainties regarding the trading price of Trump Media shares. The outcome of these factors will likely shape the future financial standing of both Trump and the merged company.
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