Shareholders of Digital World Acquisition Corp. (DWAC) approved a merger with former President Trump’s media startup on Friday, teeing up Truth Social’s stock market debut and a potential $3.5 billion windfall for Trump.
The long-delayed merger between the blank check company and Trump Media & Technology Group received regulatory approval from the Securities and Exchange Commission (SEC) last month.
Trump stands to make about $3.5 billion from the deal, given the nearly 79 million shares he would control in the newly merged company.
It is reasonable to think that relevant investors now own DJT, including if he gets re-elected. The deal seem to be bogus because the underlying asset, Truth Social, is worthless crap, as the WaPo reports:
The merger will net Trump Media $300 million that Digital World initially raised from investors. Trump’s allies and company executives will also be granted bundles of shares in the new company that could be worth millions of dollars. But trading on the stock market will also open the company to more public scrutiny, and any drops in share prices would affect the value of those stakes.
Critics have said Trump Media is a “meme stock” with a more than $6 billion valuation they say is out of sync with its financial outlook. Trump Media lost $49 million in the first nine months of last year and brought in $3.4 million in revenue, Digital World said in an SEC filing.A lockup provision in the merger agreement will also prevent Trump and other major investors from selling their shares for six months unless he is granted a waiver by the post-merger company’s board.
That could limit Trump’s ability to use the windfall to help pay off the hundreds of millions of dollars he owes in legal judgments. Trump does not have the cash to secure a bond that would delay enforcement of the $464 million judgment in a New York fraud case, his lawyers said. If he does not post a bond by Monday, the state’s attorney general could move to seize his bank accounts, real estate and other assets.
Any lockup change or waiver will be decided by the post-merger company’s board, which will be stocked with Trump allies, an SEC filing shows. The board’s nominees include Trump’s oldest son, Donald Trump Jr.; Trump’s former trade representative, Robert E. Lighthizer; Linda McMahon, who headed the Small Business Administration under Trump; and Kash Patel, who served on Trump’s National Security Council.
The post-merger company, which will be called Trump Media, could begin trading on the Nasdaq stock exchange as soon as Monday under the ticker symbol of Trump’s initials, DJT.
How on Earth could serious money be invested in this particular small, long-standing money losing social media asset? It lost $49 million on $3.4 million in revenue over a 9 month period. There very likely is a hidden quid pro quo going on here. It will be kept secret from us, very likely involving nepotism, cronyism, bribery, corruption and/or treason.
The company’s corrupt board will probably approve a waiver to allow DJT to sell stock now, presumably causing stock price to crash. Whether there is enough time for DJT to save his assets from court seizure is not clear to me. Today is Friday and DJT has to post a bond by Monday. Stock does not start trading until Monday, leaving DJT essentially no time to sell stock and post a bond to protect his real estate assets.
There is some speculation that DJT has raised bond money from people or sources he refuses to disclose. One source posits that corrupt Saudi thugs and/or corrupt Russian oligarchs are possible buyers of DJT.
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