Shareholders of the shell company controlling Truth Social, the brainchild of former President Donald Trump, have given the green light to take the social media platform public, potentially netting the Republican leader a hefty $4 billion payday amid a critical phase in his legal battles.
In a vote by Trump Media & Technology Group stakeholders to merge with Digital World Acquisition Corp, a special purpose acquisition company (SPAC), Truth Social is set to hit the NASDAQ Stock Exchange with the ticker symbol “DJT.”
Should the valuations for the new entity hold, President Trump stands to rake in anywhere between $3.5 billion to $4 billion in fresh net assets, per CBS News. However, converting the theoretical value into cold hard cash might pose a challenge.
Trump would need to grant permission for the liquidation of his stock before a six-month lockup period expires. This move would enable him to muster the $454 million bond required for his New York real estate judgment.
Lockup provisions are designed to prevent company owners from hastily offloading shares to cash in before a potentially volatile stock price nosedives, leaving ordinary investors in the lurch.
New York Attorney General Letitia James has issued a warning to start seizing Trump’s assets by Monday if he fails to cough up the required amount. His legal team argues that lending institutions are reluctant to meet his demands.
While Trump currently boasts about $500 million in liquid assets, observers speculate he may need to double that figure to practically settle the judgment while the appeals court deliberates.
Trump launched Truth Social in the wake of his 2021 ban from X, previously known as Twitter, over remarks about the January 6th, 2021 Capitol breach, which Twitter deemed misleading.
Amid widespread sympathy during his ongoing legal battles, a public offering raises the prospect of Trump loyalists driving up the stock price on its debut, further padding Trump’s pockets.
Yet, Trump’s financial woes extend beyond the New York case. His political action committees, which fund his legal expenses, raked in more than they raised in 2023.
He continues to grapple with $8.5 million in legal debt and has shelled out over $50 million thus far.
Nevertheless, Truth Social proves to be a lucrative venture for the 45th president. The nascent social media platform pocketed $3.7 million in revenue in the first quarter of 2023, per regulatory filings. While the site still operates at a loss, a potential sale could lure new advertisers disenchanted with X to give the president’s platform a shot.
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