Donald Trump’s media company, the Trump Media and Technology Group (TMTG), will merge with a special purpose buyout company on the Stock Exchange, it was decided in a vote during a general meeting today, a development that is expected to free up billions of dollars for the former US president.
The outcome of that merger plan looked uncertain ahead of the AGM, as the vote had been postponed several times over the past two and a half years due to a lack of quorum. This entry into the Stock Exchange will provide a breath of oxygen to Donald Trump, whose financial situation is precarious.
Earlier this week, Trump said he was unable to raise a $454 million bond needed to stay the appeal of a February civil trial. As part of this trial, Donald Trump was convicted of lying about the value of his assets, mainly to get bank loans.
Specifically, TMTG will merge with Digital World Acquisition Corp (DWAC), a special purpose acquisition company (SPAC), whose sole objective is to enable a company to enter the Stock Exchange more easily compared to the classic listing route. TMTG, of which Donald Trump himself is the main shareholder, will control tens of millions of shares of the newly listed company.
Based on estimates, his stake is valued at more than $3 billion given the stock’s current price. The agreement reached between TMTG and DWAC provides for a six-month lock-up period during which shareholders will not be able to sell their securities in the market.
Nothing, however, will prevent Donald Trump from offering his shares as collateral in court or getting a loan based on the value of those shares. Surprisingly, the media company of the former American head of state has limited activity.
He oversees Donald Trump’s social network, Truth Social, which was created in February 2022 and has generated only a few million dollars in turnover since its inception.
Source: APE-MPE, AFP
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