Donald Trump’s Truth Social network, backed by Trump Media & Technology Group (TMTG), is eyeing a Wall Street debut through a merger with Digital World Acquisition Corp. (DWAC), a special purpose acquisition company (SPAC). This deal could potentially value Trump’s stake in the billions. However, Trump is unlikely to realize immediate financial gains due to a six-month “lock-up” period that restricts major shareholders from selling their stock quickly. This provision aims to stabilize the stock’s price post-merger.
The future profitability of TMTG remains uncertain, as the company has acknowledged ongoing financial losses. The impending shareholder vote on Friday to approve the merger is seen as likely to pass, given the stock’s significant rise fueled by Trump supporters and speculative investors. Post-merger, TMTG plans to trade under the ticker symbol DJT, echoing Trump’s initials.
Despite potential legal pathways to release Trump from the lock-up agreement sooner, such moves would require careful justification to avoid legal challenges. TMTG’s board, expected to include Trump’s allies and family members, faces the task of navigating these financial and legal complexities. The company’s financial disclosures highlight risks associated with Trump’s controlling interest, the challenging landscape for new social media ventures, and TMTG’s current financial losses, raising questions about the investment’s safety and rationality.
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