Trump's social media company will go public after merger is approved
Newsy
The company, whose flagship product is Truth Social, will go public after its merger with Digital World Acquisition Corp. is approved.
Donald Trump is returning to the stock market.
Shareholders of Digital World Acquisition Corp., a publicly traded shell company, approved a deal to merge with the former president's media business in a Friday vote. That means Trump Media & Technology Group, whose flagship product is social networking site Truth Social, will soon begin trading on the Nasdaq stock market.
Trump could receive a sizable payout in the process. He would own most of the combined company — or nearly 79 million shares. Multiply that by Digital World's closing stock price Thursday of $42.81, and the total value of Trump's stake could surpass $3 billion. The shares did fall 5% after the merger approval was announced.
The deal's greenlight arrives at a time the presumptive Republican presidential nominee is facing his most costly legal battle to date: a $454 million judgment in a fraud lawsuit.
But Trump won't be able to cash out the Friday deal's windfall immediately, unless some things change, due to a "lock-up" provision that prevents company insiders from selling newly issued shares for six months.
