Donald Trump’s social media company Truth Social completed a merger Friday morning that could net the former president over $3 billion.
Shareholders of Digital World Acquisition Corporation — a special purpose acquisition company — approved a merger with Trump Media & Technology Group, which owns Truth Social.
The company can begin trading as a public company, with the stock symbol DJT on Nasdaq, as early as next week.
Shares in DWAC currently stand around $40 per share.
With Trump owning 58.1% of the common stock in the company, the former president stands to make over $3 billion from the deal depending on how the stock ultimately trades. Experts say it represents a staggering valuation for a social media company that ranks below major competitors like Facebook, X, and TikTok.
Former President Donald Trump speaks after voting in the Florida primary election in Palm Beach, FL, March 19, 2024.
Wilfredo Lee/AP
However the deal currently includes a lockout provision that prevents Trump from immediately selling or getting loans based on his shares — potentially limiting Trump’s ability to use the windfall as collateral for a bond in his $464 million civil fraud judgment.
Trump faces a Monday deadline to secure a financial guarantee to cover the judgment, after a New York judge in February ordered him to pay $464 million in disgorgement and pre-judgment interest when he found the former president and his adult sons liable for using “numerous acts of fraud and misrepresentation” to inflate his net worth in order to get more favorable loan terms.
Trump has denied all wrongdoing and has appealed the decision in the case.
Former President Donald Trump’s social media venture, Truth Social, has finalized a merger with a special purpose acquisition company (SPAC) that could potentially earn Trump over $3 billion. This move marks a significant step in Trump’s efforts to establish a presence in the digital world after being banned from major social media platforms following the Capitol riot in January 2021.
The merger between Truth Social and Digital World Acquisition Corp. was announced earlier this year and has now been completed, paving the way for Truth Social to launch its platform in the coming months. The SPAC deal values Truth Social at around $875 million, with Trump holding a 73% stake in the company.
Truth Social is expected to be a conservative-leaning social media platform that aims to provide a space for Trump supporters and like-minded individuals to engage with each other without fear of censorship or deplatforming. The platform will feature a Twitter-like interface and is set to include features such as direct messaging, video sharing, and live streaming.
With the merger now finalized, Trump stands to make a substantial profit from his involvement in Truth Social. The potential earnings of over $3 billion come from the valuation of the company and the stake that Trump holds in it. This would be a significant financial windfall for Trump, who has faced financial challenges in recent years, including the loss of several lucrative business deals and the ongoing legal battles stemming from his time in office.
The success of Truth Social remains to be seen, as the platform will face stiff competition from established social media giants such as Facebook, Twitter, and Instagram. However, Trump’s loyal base of supporters and his ability to generate controversy and media attention could give Truth Social a boost in attracting users and advertisers.
Critics of Truth Social have raised concerns about the platform’s potential to spread misinformation and amplify divisive rhetoric, given Trump’s history of using social media to promote falsehoods and incite violence. However, supporters argue that Truth Social will provide a much-needed alternative to mainstream social media platforms that they perceive as biased against conservative voices.
Overall, the merger between Truth Social and Digital World Acquisition Corp. represents a major development in Trump’s post-presidential business ventures. With the potential for significant earnings on the horizon, Trump’s foray into the world of social media is sure to attract attention and scrutiny in the months to come.
