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Trump to Earn a Potential $3 Billion for Truth Social Merger with DWAC

Asktraders News Team trader
Updated 25 Mar 2024

Truth Social, helmed by Trump Media and Technology Group, has solidified its corporate profile with an approved merger with Digital World Acquisition Corporation. This strategic union has positioned former United States President Donald Trump for a significant financial gain—potentially in excess of $3 billion.

The merger's approval by shareholders of Digital World Acquisition Corporation has opened avenues for the combined company to embark on its journey as a publicly traded entity. As it steps into the financial markets, it will carry the ticker symbol DJT on the prominent Nasdaq stock exchange.

With Donald Trump at the financial helm, owning a substantial 58.1% of the common stock of the emergent company, the stakes are high. His share of the pie, when gauged against the current stock valuation of approximately $40 per share, calculates to a staggering sum that would substantially inflate his wealth.


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Despite the lucrative outlook, a stipulation in the merger agreement—a lockout provision—imposes a restraint on Trump's immediate liquidity of these assets. This stipulation prevents a quick sale or the use of these shares as collateral for loans. This could present a hurdle as Trump navigates other financial waters, particularly given the looming obligation to secure financial guarantees against a sizeable $464 million civil fraud judgment, a penalty he is currently contesting through legal appeals.

Industry experts have cast a critical eye on the post-merger valuation of Truth Social, finding it relatively high. This estimation is especially noteworthy when the platform's position in the market is considered in relation to titans such as Facebook, Twitter, and TikTok, among whom Truth Social has yet to claim comparable influence or user base.

While the valuation, the future trading performance, and the implications for Trump’s finances hold a position of interest in the business community, specifics remain under wraps as Trump Media & Technology Group has refrained from immediate comment. Donald Trump himself commented on Truth Social saying he “spends a lot of time on it” and “loves it”, which will no doubt bring additional interest as the race for the White House gathers pace.

As Trump's Truth Social ventures forth as a newly cemented public company, its valuation and its significance for Trump's broader financial landscape will surely be a subject of continuous analysis and discussion in the business sectors. The merger, ripe with potential for Donald Trump's net worth, could prove consequential amid the backdrop of his ongoing financial and legal encounters.

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