Truth Social, the parent company of Donald Trump’s social media company, can Soon became a multi-billion dollar public company, depending on a vote scheduled for Friday. If the proposed merger goes through, Trump could stand to gain more than $3 billion, which could be his ticket out of some hefty legal bills.
Shareholders of Digital World Acquisition (DWAC), a special purpose acquisition company formed to facilitate the listing of private companies, will vote on Friday whether to approve a merger with Trump Media Technology Group. Trump will own at least 58% of the new company, which will be listed on Nasdaq and named after the former president’s initials DJT.
Trump has faced multiple expensive lawsuits over the past few years.A judge recently ordered Trump to pay costs Civil fraud lawsuit valued at $454 million New York Attorney General Letitia James said. The New York Times reported that Trump is having trouble paying the huge sumSome 30 companies he approached allegedly wouldn’t lend him money. A merger with Truth Social could be a lifeline for Trump.
Trump will own about 79 million shares in the new company, according to one company SEC Filings. The shares were worth about $40 each as of Thursday morning, meaning Trump could earn more than $3.1 billion from his social media ventures. Last month, DWAC was worth about $50 a share, valuing Trump’s stake at nearly $4 billion. However, as the merger came closer to fruition, the stock price soared last year.
While Trump can’t deliver immediately, it could provide the former president with some meaningful capital.Truth Social’s parent company had revenue of just over $3.3 million in the first nine months of 2023, according to the data SEC Filings, but the stock value may be higher. The SEC gave green light The deal was struck back in February.
Truth Social launched in 2022, more than a year after Trump was removed from Twitter for tweets he posted during the Jan. 6 insurrection. The social media site has become a beacon for Trump, 6.7 million followers, and remains the app’s main selling point. However, Truth Social is also a platform for other conservative voices.
The Trump Media CEO said in a government document that Truth Social was created to “build a free speech highway outside the stifling stranglehold of Big Tech.” This was put to the test when Joe Biden created an account on the platform in October. Months later, the account remained active as a way for Biden to attack Trump.