Orlando, Florida – The future of Trump Media faces uncertainty as shares of Digital World Acquisition Corp (DWAC) take a hit following their merger approval. Former President Donald Trump’s majority stake in the newly merged company could be valued lower than the estimated $3 billion, as the stock price dropped from $44.20 to $36.94 per share on Friday.
The decline in DWAC shares may reflect concerns about Trump Media & Technology Group’s ability to generate substantial revenue post-merger. With Trump facing significant legal challenges, there are doubts about whether he will seek to cash in on his shares early amidst mounting legal problems.
TMTG, the parent company of Trump Social platform, reported losses of nearly $50 million in the first three financial quarters of 2023, with revenue totaling less than $3.5 million during that period. Trump himself faces civil legal judgments surpassing half a billion dollars in New York federal and state courts, in addition to mounting legal fees from various cases and criminal prosecutions.
Despite Trump’s ownership of at least 58% stake in Trump Media, a six-month restriction prevents him from selling shares. However, the new board of directors, including his son Donald Trump Jr., could vote to lift the restriction sooner, allowing Trump to sell shares to cover legal expenses. This potential sell-off could further depress share prices and lead to a domino effect among other shareholders.
Trump Media is set to begin trading on the NASDAQ stock market next week under the ticker symbol DJT, the same symbol used for Trump’s previous publicly traded company, Trump Hotels & Casino Resorts. The latter company faced financial struggles, losing money every year until filing for bankruptcy protection in 2004 and being delisted from the exchange.
The future of Trump Media remains uncertain amidst legal and financial challenges, as shareholders await the impact of Trump’s potential sell-off on the company’s stock price. With the merger now approved, all eyes are on the company’s performance post-launch on the NASDAQ stock market.