Donald Trump’s potential return to the stock market appears imminent, with shareholders of Digital World Acquisition Corp. set to vote on Friday on a merger with the former president’s media venture. If approved, Trump Media & Technology Group, home to the social network Truth Social, could soon debut on the Nasdaq stock exchange, taking Digital World’s spot.
Approval of the merger is expected, paving the way for Trump to reap significant benefits. With ownership of approximately 79 million shares in the combined entity, valued at over $42 each, Trump’s stake could surpass $3 billion.
However, despite the promising outlook, Trump may not immediately cash out due to a “lock-up” provision preventing insiders from selling shares for six months.
Trump’s past stock market endeavors haven’t always fared well. Trump Hotels and Casino Resorts, listed under the symbol DJT, went bankrupt in 2004 after going public in 1995.
Digital World has cautioned investors about potential risks associated with Trump Media’s public debut. These include Trump’s significant voting power as a controlling shareholder, uncertainties surrounding new social media platforms, and Trump Media’s anticipated continued financial losses.
Trump Media recorded a $49 million loss in the first nine months of the previous year, despite generating only $3.4 million in revenue and facing $37.7 million in interest expenses.
The merger plans between Trump Media and Digital World were announced in October 2021, but legal challenges have plagued the deal. Despite this, Truth Social launched in February 2022, positioning itself as a platform for Trump’s messaging following his ban from major social media platforms after the Jan. 6 Capitol insurrection.
While Truth Social’s user numbers remain undisclosed, estimates suggest around 5 million active users in February, surpassing some rivals but still trailing behind major platforms like TikTok and Facebook.
Trump continues to champion Truth Social, reiterating its significance as “his voice” and “the real voice of America” in a recent social media post.
