New York, NY – Truth Social, the social media platform started by former President Donald Trump, completed a merger on Friday morning that has the potential to bring in over $3 billion for Trump. Shareholders of Digital World Acquisition Corporation, a special purpose acquisition company, approved the merger with Trump Media & Technology Group, the owner of Truth Social.
As a result of the merger, Truth Social can now begin trading as a public company under the stock symbol DJT on Nasdaq as early as next week. Analysts note that shares in Digital World Acquisition Corporation (DWAC) are currently valued around $40 per share. With Trump owning 58.1% of the company’s common stock, he stands to potentially earn billions depending on how the stock performs in the market.
Despite the significant potential windfall for Trump, there is a lockout provision in place that currently prevents him from selling his shares or using them as collateral for loans. This provision could impact Trump’s ability to address a $464 million civil fraud judgment that he is facing. The judgment stems from a lawsuit in which Trump and his adult sons were found liable for engaging in fraudulent activities to inflate Trump’s net worth to secure better loan terms.
Facing a Monday deadline to secure financial backing for the judgment, Trump maintains his innocence and has appealed the court’s decision. As of now, Trump Media & Technology Group has not responded to requests for comments on the matter from various news outlets.
The completion of the merger marks a significant milestone for Truth Social, positioning it as a potential competitor in the social media landscape. However, the legal challenges facing Trump cast a shadow over the deal and raise questions about the former president’s financial future. Investors and analysts will be closely watching how these developments unfold in the coming weeks.