Trump poised for billions as stock market deal passes. Trump Media, which owns Truth Social, a social media platform, is set to become a publicly traded company. Shareholders of Digital World Acquisition Corp voted to acquire it, giving Trump a 58% stake worth about $3 billion.
The deal has many red flags, including lawsuits from former business partners and an $18 million settlement over fraud charges related to the merger. Despite this, individual investors, many Trump supporters, remain optimistic.
Digital World, now Trump Media & Technology Group, will start trading on Nasdaq as DJT. Trump’s financial issues, like his New York fraud penalty, won’t be immediately resolved. He’s barred from selling his shares for six months, but he could try to get a loan using his shares as collateral.
Investing in Trump Media is risky. Although its value is over $5 billion, it only made $3.3 million in revenue and lost nearly $50 million. The merger will give Trump Media over $200 million in cash for growth.
Truth Social, launched in 2022 as an alternative to Twitter and Facebook, has about 8.9 million sign-ups but doesn’t track user metrics. Analysts consider Digital World a “meme stock,” with a share price disconnected from its fundamentals.
Despite doubts about its future, individual investors continue to support Digital World. Trump stands to benefit greatly from the deal, mainly through the value of his brand.
Trump has faced legal challenges, including a New York judgment requiring him to pay $43.9 million. He criticized the ruling, claiming it was politically motivated.
Trump’s financial worth is debated, with him valuing his brand at over $10 billion but a 2021 statement putting his net worth at $4.5 billion, mostly in real estate.