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business politics

Trump Media & Technology Group Soars in Nasdaq Debut, Valued at Over $9 Billion

In a stunning display of market enthusiasm, Trump Media & Technology Group (TMTG) roared onto the Nasdaq exchange with a debut that surpassed all expectations. The company, under the new ticker symbol “DJT,” saw its shares surge by an impressive 36%, propelling its market capitalization to an astounding $9.25 billion on an undiluted basis. However, the excitement was momentarily tempered as trading had to be briefly halted due to volatility in the early hours following the opening bell.

At the helm of TMTG stands former President Donald Trump, whose majority stake in the company soared to a valuation of $5.38 billion. Despite this considerable wealth, Trump finds himself bound by lock-up restrictions, preventing him from selling or leveraging his shares for the next six months.

Thomas Hayes, chairman of Great Hill Capital, offered his perspective on TMTG’s valuation, suggesting that it may exceed the company’s underlying fundamentals. However, he acknowledged the undeniable influence of Trump’s fervent supporters, whose enthusiasm undoubtedly fueled the surge in TMTG’s share price. This sentiment reverberated across various platforms, with TMTG emerging as one of the top-performing stocks and trending on investor forums such as Stocktwits.

Beyond the financial fervor, the article delves into Trump’s ongoing financial struggles, including his challenges in raising funds for both his political campaign and legal expenses amidst facing multiple criminal trials. Nonetheless, a temporary reprieve from a ruling concerning asset seizure in New York provided a much-needed respite for Trump.

The article also highlights the strategic move to inject $300 million cash into Truth Social, a subsidiary of TMTG, which had previously encountered operational losses. This infusion of capital underscores a concerted effort to strengthen the platform and capitalize on Trump’s enduring influence in the political sphere.

However, amidst the euphoria surrounding TMTG’s debut, speculation looms regarding Trump’s future involvement in Truth Social. The possibility of his divestment and disengagement from management hinges on the outcome of his presidential aspirations, adding a layer of uncertainty to TMTG’s trajectory.

Behind the scenes, the journey to TMTG’s Nasdaq debut was not without its hurdles. Digital World Acquisition Corp, the blank-check firm that merged with Trump’s company, faced regulatory scrutiny, including investigations by the U.S. Department of Justice and a settlement with the U.S. securities regulator over disclosure inaccuracies. Nevertheless, with regulatory hurdles cleared and shareholder approval secured, TMTG stood poised for its momentous entry into the public market.

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business politics

Trump’s Truth Social Is Going Public Following DWAC Merger Approval

In a significant development in the tech and media landscape, Truth Social, the social media platform launched by former President Donald Trump, is on the verge of going public. The much-anticipated move comes after shareholders of Digital World Acquisition Corp. (DWAC), a blank-check company, gave their seal of approval to a merger with Truth Social’s parent company, Trump Media & Technology Group.

This decision marks a crucial milestone not only for Trump but also for the broader social media industry. The approval injects billions of dollars into Trump’s net worth, although he is subject to a six-month lockup period during which he cannot sell any shares.

The path to this merger has been anything but smooth, characterized by a multiyear saga involving legal battles, including civil and criminal lawsuits, as well as various extensions and postponements. A recent twist saw DWAC suing its former CEO, Patrick Orlando, in an attempt to secure his vote in favor of the merger amid an ongoing compensation dispute.

Trump Media & Technology Group’s financials reveal a $49 million net loss on revenue of $3.38 million for the first nine months of 2023. Despite this, the merger approval signifies a transition as DWAC will effectively cease to exist, paving the way for Trump Media & Technology Group to debut on the Nasdaq.

The new entity’s board of directors will boast notable figures, including Donald Trump Jr. and several former members of the Trump White House. Additionally, former Rep. Devin Nunes (R-Calif.) is set to take the reins as CEO of Trump Media & Technology Group, ushering in a new era for the company.

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business politics

Donald Trump Poised to Reap $3.4 Billion Windfall with Trump Media’s Potential IPO

In a dramatic turn of events, former US President Donald Trump’s financial future hangs in the balance as shareholders prepare to cast their votes on the fate of Trump Media & Technology Group. If the shareholders give their approval, Trump stands to gain a staggering $3.4 billion in wealth with the impending initial public offering (IPO) of his media venture.

The saga unfolds as Trump’s media conglomerate, which includes the Truth Social tech platform, plans to go public through a merger with a special purpose acquisition company (Spac) named Digital World Acquisition. However, the path to this IPO is fraught with complications, as Digital World Acquisition finds itself embroiled in a legal battle with sponsor ARC Global Investments, which seeks to delay the merger.

Adding to the intrigue, the merger agreement includes a provision that prohibits major shareholders, including Trump, from selling their stock for six months following the completion of the deal. This move aims to prevent a sudden influx of shares into the market, which could potentially suppress their value.

Trump’s financial landscape is further complicated by ongoing legal challenges. Just last month, a New York judge ordered him to pay a hefty $454 million following a civil fraud case. Despite vehemently denying any wrongdoing and vowing to appeal the ruling, Trump faces mounting pressure to settle the matter.

The financial performance of Trump Media & Technology Group also comes under scrutiny, revealing modest returns since its inception in 2021. With reported losses of $31.6 million and sales barely surpassing $5 million, the company’s IPO success hinges on its ability to maintain its stock price post-flotation.

Digital World Acquisition’s stock price, meanwhile, has soared by 145% this year, driven by speculation surrounding Trump’s potential return to politics. Dubbed a “meme stock,” the company’s valuation is heavily influenced by internet memes and speculation rather than traditional financial fundamentals.

As the deadline looms, the spotlight remains firmly on Trump’s bid to solidify his media empire and potentially stage a political comeback. With his initials, DJT, set to adorn the stock market ticker of the newly merged entity, the stage is set for a high-stakes showdown in both the financial and political arenas.