Trump Media Group Merger with Digital World Corp Set to Shake Stock Market

Donald Trump‘s anticipated return to the stock market is on the horizon with all eyes on the upcoming vote by shareholders of Digital World Acquisition Corp set for Friday. This publicly traded shell company aims to merge with Trump’s media business, potentially paving the way for Trump Media & Technology Group, the entity behind the social networking site Truth Social, to debut on the Nasdaq in place of Digital World.

If approved, Trump could reap substantial financial gains. He currently holds a majority stake in the combined company of nearly 79 million shares, valued at over $3 billion based on Digital World’s current stock price of over $42 per share.

The looming deal arrives amidst Trump facing a significant legal battle involving a fraud lawsuit, adding intrigue to his financial endeavors.

However, Trump will face restrictions on cashing out immediately even if the merger goes through, due to a six-month ‘lock-up’ provision preventing insiders from selling newly issued shares.

Trump’s past stock market venture with Trump Hotels and Casino Resorts, which went public in 1995 under the DJT symbol, ended in bankruptcy and delisting from the New York Stock Exchange by 2004.

Digital World has highlighted the risks associated with the merger, including Trump’s control as a majority shareholder, the precarious nature of new social media platforms, and Trump Media’s expected losses in the foreseeable future.

Trump Media and Digital World announced their merger plans in October 2021, amidst legal hurdles and regulatory scrutiny leading up to the crucial shareholder vote on Friday.

Truth Social, Trump’s brainchild launched in February 2022 post his ban from major platforms like Facebook and Twitter, now known as X, following the U.S Capitol insurrection in 2021. Trump continues to leverage Truth Social as his primary communication channel.

Trump’s recent endorsement of Truth Social on the platform underscores his commitment: ‘TRUTH SOCIAL IS MY VOICE, AND THE REAL VOICE OF AMERICA!!! MAGA2024!!!’

Truth Social’s user base remains undisclosed by Trump Media, but research estimates suggest around 5 million active users, positioning it below giants like TikTok and Facebook, yet ahead of rivals like Parler and Gettr.