Despite his ongoing legal battles, former President Donald Trump is poised for a significant financial windfall. With an expected acquisition of 36 million additional shares in Trump Media & Technology Group, his net worth could soar by over $1 billion.
This impressive surge in wealth stems from an “earn out” provision in the merger deal that birthed Trump Media & Technology Group, the parent company of Truth Social. According to CNBC, this provision rewards Trump with additional shares based on the company’s stock performance, provided certain benchmarks are met.
For Trump to qualify for the bonus shares, shares of Trump Media, trading under the ticker DJT, must maintain a minimum price of $17.50 over a specific period. As of the last trading session, the stock comfortably exceeded this threshold, ensuring Trump’s receipt of the additional shares.
Upon receiving these shares, Trump’s total ownership in the company would surpass 114 million shares, making him the majority shareholder with approximately 65% of the total outstanding shares. At the current stock price of around $35 per share, Trump’s stake in the company could be valued at an estimated $4 billion, as reported by CNN.
Despite this financial boon, Trump Media continues to grapple with profitability issues, having posted significant losses and minimal revenue in the previous year. The company’s stock, which initially soared to nearly $80 after going public through a merger with Digital World Acquisition Corp., has since experienced a sharp decline.
Fortune reported that Trump stands to receive another 36 million shares if the stock maintains a price above $17.50 through the end of trading Tuesday. This potential payout, valued at over $1.25 billion, underscores the significant impact on Trump’s personal fortune.
However, legal and practical constraints accompany Trump’s newfound wealth. The shares are subject to a lock-up period, preventing their sale for several months post-merger. This restriction could influence their eventual market value when and if Trump decides to sell. Additionally, analysts remain skeptical of Trump Media, citing concerns that the company is overvalued and that its stock price does not accurately reflect its fundamentals.
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