The stock market value of Donald Trump’s company Trump Media & Technology, which owns his social network called Truth Social, increased one and a half times during the first day of trading and reached nine billion dollars, Reuters reported on Monday, March 26.
Trump’s stake in the company (58 percent) is estimated at $4.6 billion, the Financial Times notes. During the first day of trading on the NASDAQ exchange, the company’s price rose from $49.95 to $79.38 per share, and at the close it was $57.99. Trading was so volatile that it was stopped for several minutes, the FT noted.
“This should be seen more as a sign of enthusiasm among Trump supporters than as an indicator of business prospects,” Reuters quoted Great Hill Capital analyst Thomas Hayes as saying. According to the agreement, Trump is not allowed to sell his share for six months, FT recalls.
Creation of Truth Social and going public
After the storming of the Capitol in Washington on January 6, 2021, Trump was blocked from major social networks, and he announced the creation of his own platform as a counterweight to the “tyranny” of large technology companies. Trump saw Truth Social as an alternative to Facebook, Twitter and YouTube.
The company’s listing on the stock exchange became possible on Friday, March 22, when shareholders approved it after receiving the green light from the US Securities and Exchange Commission (SEC). The placement took place through a merger with a public dummy company (Special purchase acquisition company, SPAC), which was created specifically to list a large company with a real business on the stock exchange.
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2024-03-27 06:59:22