Trump Media Merger Approved, Paving Way For Deal That Could Make Him Billions
(AP Photo/Eduardo Munoz Alvarez, File)
Shareholders of Digital World Acquisition Corporation approved a merger with Donald Trump’s media company on Friday, days before the former president is facing a deadline to pay a $464 million bond based on a New York civil fraud judgement he is appealing.
Trump Media & Technology Group will now trade on the stock market under DJT.
The New York Times reported that the deal will put $300 million into Trump’s media company, giving a cash infusion to keep Truth Social running. The merger also means that the stock market price for Trump’s media company will reportedly be $5 billion, giving Trump a personal stake of $3 billion.
That wealth on paper may not help the former president in covering the bond though, as he can’t sell any of his shares for the next six months.
The Times first reported the merger:
Based on Digital World’s stock price of $44 a share just before the vote announcement, Trump Media will debut with a market value of more than $5 billion. That means Mr. Trump’s personal stake will be worth more than $3 billion.
Shares of Trump Media could begin trading under the new stock symbol as soon as next week.
The deal’s approval comes as Mr. Trump is facing a Monday deadline to cover a $454 million penalty in a civil fraud case in New York. He is restricted for six months from selling any his shares or using them as collateral for a loan, although he could ask the board of the merged company to waive that rule for him.
Trump’s lawyers previously claimed in a court filing that finding someone to underwrite Trump’s massive bond was a near impossibility after they tried multiple sources for the money. New York Attorney General Letitia James’s office has pushed back on this claim. The attorney general could at some point begin targeting Trump properties if the bond goes unpaid.
This merger, however, gives the former president billions in wealth — on paper, at least — days before his deadline.
Convincing someone that this paper wealth actually holds enough value to secure a bond will remain a challenge, as Politico reported:
But Trump won’t be able to cash out anytime soon after the merger. Instead, he’ll likely need to sit on the stock for six months. And his shares, in the meantime, will ride on the whims of “MAGA meme stock investors,” small investors who are currently holding many of the shares, said Brian Quinn, a law professor at Boston College.
“By the time Trump is able to start selling his shares, I doubt they will be worth much,” Quinn said. “Certainly less than his present requirements.”
