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The parent company of Donald Trump’s social media company, Truth Social, can do just that It quickly became a multi-billion dollar public company, depending on the vote scheduled for Friday. Trump could receive more than $3 billion if the proposed merger goes through, which could be his ticket out of some massive legal bills.
Shareholders in Digital World Acquisition Company (DWAC), a special purpose acquisition company formed to facilitate a private company going public, will vote on Friday on whether to approve a merger with Trump Media and Technology Group. Trump will own at least 58% of the new company, which will be listed on the Nasdaq under the former president’s initials, DJT.
Trump has faced several expensive lawsuits in the past few years. A judge recently ordered Trump to pay up $454 million in civil fraud suit From New York Attorney General Letitia James. The New York Times reported this Trump was having difficulty paying this large sumIt was claimed that nearly 30 companies he contacted would not lend him money. A merger with Truth Social could be a lifeline for Trump.
Trump is set to own approximately 79 million shares in the new company, according to a report SEC filing. Each of these shares is worth about $40 as of Thursday morning, meaning Trump could earn more than $3.1 billion from his social media venture. DWAC was worth about $50 per share last month, and Trump’s stake was worth nearly $4 billion. However, the stock price has risen significantly in the past year, as this merger gets closer to fruition.
While Trump was unable to cash out the money immediately, it could provide the former president with some useful capital. Truth Social’s parent company generated just over $3.3 million in revenue for the first nine months of 2023, according to Filings with the SEC, but the value of the stock could be worth much more than that. The Securities and Exchange Commission gave a Green light On this deal back in February.
Truth Social launched in 2022, just over a year after Trump was kicked off Twitter over his tweets during the January 6 insurrection. The social media site has served as a beacon for Trump 6.7 million followers, and remains a major selling point for the app. However, Truth Social is also a platform for other conservative voices.
Truth Social was created to “build a free speech highway outside the stranglehold of Big Tech,” Trump Media CEO says in a government filing. This was tested when Joe Biden created an account on the platform in October. The account remains active months later as a means for Biden to troll Trump.
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