Investors have approved the plan for Donald Trump’s social media venture, Truth Social, to become publicly traded, a move that could see the former president’s finances soar by approximately $3 billion.
Former President Donald Trump is poised to significantly enhance his financial standing as investors have ratified a plan for his social media venture, Truth Social, to become a publicly traded entity. This move could theoretically enrich Trump by approximately $3 billion. The approval emerged from a shareholder vote concerning Digital World Acquisition, the entity with which Trump aimed to merge his business. Despite Truth Social’s moderate commercial performance, its valuation soared to around $6 billion following investor backing.
Post-merger, the conglomerate will be known as Trump Media & Technology Group and will list on the stock exchange under the ticker “DJT,” derived from Trump’s initials. Holding an impressive 79 million shares, Trump’s stake in the new company is substantial. However, he will encounter a six-month wait before he can liquidate any stock, due to sale restrictions.
This strategic development occurs as Trump navigates through financial straits, amidst aspirations for political comeback. The stock price hike of Digital World has been partly attributed to a meme stock phenomenon, where internet memes drive retail investment enthusiasm.
Despite skepticism over the inflated valuation and Truth Social’s uncertain future, Trump’s financial outlook through this venture appears optimistic. The merger has been finalized amidst regulatory scrutiny, with DWAC previously settling fraud charges related to the merger and facing insider trading allegations. Truth Social was launched in February 2022 following Trump’s exclusion from major social platforms and has recorded about 5 million active users, a figure that trails far behind giants like TikTok and Facebook.
The move to public trading marks a potentially transformative period for Trump’s engagement with the business and political spheres, especially as he grapples with legal challenges, including a significant fraud lawsuit in New York. Despite possible financial and legal hurdles ahead, Trump’s imminent public listing of Truth Social on Nasdaq signifies a pivotal juncture in his post-presidential career and financial trajectory.
