Former President Donald Trump is making a return to the stock market with his media business, Trump Media & Technology Group, set to begin trading on the Nasdaq stock market. Shareholders of Digital World Acquisition Corp. approved a deal to merge with Trump’s media business, which includes the social networking site Truth Social. Trump stands to own nearly 79 million shares of the combined company, with a potential value of nearly $3 billion.
However, Trump won’t be able to cash out immediately due to a “lock-up” provision that prevents insiders from selling shares for six months. The approval comes at a time when Trump is facing a costly legal battle, with a $454 million judgment in a fraud lawsuit.
Digital World’s stock has seen fluctuations, with small-time investors driving up the price in anticipation of the merger. Trump’s previous venture into the stock market with Trump Hotels and Casino Resorts ended in bankruptcy in 2004.
The merger faced challenges leading up to the approval, including lawsuits and a federal probe. Truth Social was launched in 2022 as a platform for Trump’s message after being banned from major social platforms following the Jan. 6 insurrection.
With the merger, Trump Media will have to disclose more details as a public company, including quarterly finances and material news. The move into the public market also brings challenges, such as mainstream advertisers avoiding controversial content.
The approval of the merger and Trump’s return to the stock market mark a significant development in his media business, with potential implications for both shareholders and the future of Truth Social.
