New York, New York – Former President Donald Trump stands to potentially earn billions of dollars following the approval of a merger between Digital World Acquisition Group and his social media company. The merger, which creates Trump Media, includes both a media business and Trump’s social network, Truth Social. The new entity may start trading next week under the ticker symbol DJT.
Digital World Acquisition Group, a special-purpose acquisition company (SPAC), had been working towards this merger for the past two years. Despite facing various challenges leading up to the shareholder vote, the merger finally received approval, paving the way for the new company to go public.
While the potential gains from the merger are significant, Trump and other stakeholders will not have immediate access to the proceeds. There is typically a six-month lock-up period following an IPO to prevent disruptive share sales. In addition to financial considerations, Trump also faces legal obligations, including posting a $464 million bond related to a judgment against him in New York.
Truth Social was launched in response to Trump’s removal from major social media platforms following the events of January 6 at the U.S. Capitol. Despite its lackluster growth, the platform remains a key part of Trump’s media strategy. Trump, holding a 58% stake in the new entity, stands to benefit based on the performance of DWAC stock leading up to the company’s public debut.
Aside from Trump, another notable figure in the merger is former Republican Congressman Devin Nunes, who now leads Trump’s media venture. The stock’s trading performance has garnered interest from retail investors who see it as a reflection of Trump’s political ambitions.
Overall, the merger between Digital World Acquisition Group and Truth Social marks a significant development in Trump’s media endeavors, potentially reshaping the landscape of social media and politics.