Trump Media & Technology Group Set to Launch, Boosting Trump’s Wealth

The Trump Media & Technology Group, which oversees the Truth Social digital platform, is poised to debut on the stock market as early as Monday. This move could potentially swell former President Donald Trump’s fortune by over $3 billion, providing resources for his legal battles and political aspirations.

In a final effort, Trump has lodged an appeal with the appeals court, aiming to either postpone the ruling or secure a reduced bond, acknowledging his financial constraints. With legal expenses reaching $50 million last year, Trump faces unavoidable financial commitments.

After years of navigating regulatory hurdles and legal entanglements, the public debut of Trump Media through its merger with Digital World Acquisition Corporation seems imminent. The merger, pending shareholder approval by August 3, includes provisions restricting shareholders from selling their shares, a common practice to stabilise prices and instill investor confidence.

However, these restrictions could be circumvented by businesses seeking to evade provisions due to Trump’s substantial involvement in the media. Trump may seek exemption from the Digital World board or explore alternative routes, such as transferring shares to family members. Given the composition of the Trump Media Board, which may include former administration officials or Trump’s son, Donald Trump Jr., such requests could find favor.

Once shareholders greenlight the merger, Trump Media is slated to commence trading, with Trump’s 79 million shares estimated to exceed $3 billion based on Digital World’s current stock price. However, uncertainties loom over Trump Media’s trading trajectory, given its significant losses and modest advertising revenue, casting doubts on its market performance.

Upon merger completion, Digital World’s shareholders, predominantly individual investors, will transition to become stockholders of Trump Media. Many of these shareholders are vocal supporters of Trump on Truth Social, highlighting the potential impact of the merger on both companies’ stakeholders.

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