Former US President Donald Trump could potentially earn over $3 billion from Truth Social’s merger with Digital World Acquisition, amidst concerns over the social platform’s modest sales and operational viability.
Former US President Donald Trump is poised to potentially gain over $3 billion from the public listing of his social media platform, Truth Social, through a merger with Digital World Acquisition, a special purpose acquisition company (SPAC). Despite Truth Social’s modest sales of less than $5 million since its inception in 2021, the value of Digital World shares has surged by 140% due to enthusiastic support from Trump’s followers, significantly boosting the potential market valuation of the combined entity.
Trump’s significant financial interest in the venture includes 78.75 million shares, although he may need to wait six months before he can sell any shares due to standard SPAC transaction regulations. This waiting period could present challenges for Trump, especially in light of a recent court order requiring him to pay $454 million for a civil fraud case.
In a related development, Borse Dubai, the United Arab Emirates-based largest shareholder in the Nasdaq stock index, announced the sale of a third of its shares in a deal estimated at $1.6 billion. Following the transaction, Borse Dubai will become the second-largest holder in Nasdaq. This strategic sale, part of a broader effort to enhance its capital structure and liquidity, represents a continuation of its long-term commitment to Nasdaq. The sale also coincides with Dubai’s push for public listings of state-owned enterprises, reflecting the region’s ambitions to diversify its investment portfolio and strengthen its financial markets.
The anticipated merger between Truth Social and Digital World Acquisition Corp., if approved by shareholders, will not only provide Trump with a substantial paper fortune but also introduce uncertainties, given the expert warnings about the potential for continued financial losses and questions about the firm’s market valuation. The proposed company will include notable figures such as Donald Trump Jr., Devin Nunes, and Linda McMahon on its board, despite financial warnings about the risks associated with its operational viability and stock valuation.
