Former president Donald Trump will reportedly be $3 billion richer after investors approved making Trump Media a publicly traded company. Trump Media owns and operates the billionaire’s social media platform, Truth Social.
The news comes amid Trump’s attempt to post a $464 million bond in his New York City fraud trial. The business mogul recently made a desperate appeal to his supporters to help him raise money as the deadline for the bonds approaches.
Why Donald Trump Will Be $3 Billion Richer
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follow CNNthanks to approval from shareholders, a significant hurdle has been cleared for a long-delayed merger that would have cost former President Donald Trump billions of dollars at a time when he is under intense legal and financial pressure.
The number of preliminary votes revealed during the meeting showed that most of the shareholders of Digital World Acquisition Corp. approved a merger with Trump Media. According to the company, the merger could be finalized as early as next week.
After the merger is finalized, the company will be known as Trump Media & Technology Group. It will also trade under the ticker “DJT”, which is Trump’s initials.
With shares worth more than $3 billion at current market levels, Trump would own most of the publicly traded company.
Merger May Not Solve Its Cash Problems Amid Legal Trouble
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While the new merger has many positives for Trump Media, experts believe that it will not save Trump from his current cash crunch.
Speak to CNNMatthew Kennedy, senior initial public offering market strategist at Renaissance Capital, stated, “[former] President Trump will not be able to monetize that interest immediately.”
The deadline for the former president to post bond on his $464 million fine is fast approaching, and he risks losing some of his property and assets. NY AG Letitia James has made it clear that she is prepared to seize some of Trump’s properties if he fails to post bond.
According to experts, the problem with the former president’s current merger is that his holdings are not as liquid as they seem, and Trump will have a very difficult time turning paper profits into cash.
Charles Whitehead, a law professor, told the news outlet that the 77-year-old’s holdings in the company were less liquid than his real estate holdings.
The market is also reportedly overvaluing Trump Media due to the company’s fundamentals, which means it will be difficult for Trump to sell shares or pledge them as collateral.
Truth Social Struggles To Retain Users
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Another problem is that the former president’s social media platform, Truth Social, is struggling to retain users.
follow similar web statistics are shared with CNN earlier this month, the number of monthly active users of Truth Social in the US on iOS and Android was down 39% year over year. X (formerly known as Twitter) is also shrinking, albeit at a slower pace than Truth Social, which is already much smaller.
Despite these indications, Trump Media is still worth over $6 billion. Jay Ritter, a finance professor at the University of Florida, believes the current market price is hard to justify, branding the stock a “meme stock.”
Ritter said, “It’s overrated. It qualifies as a meme stock whose price is divorced from fundamental value…Meme stock investors usually buy based on a dumber investment theory: It’s overvalued today, but I hope to make money by selling it to a bigger one. fool tomorrow with a higher price.”
Donald Trump Urges MAGA Supporters To ‘Sub In’ As Bond Deadline Approaches
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News of the former president’s merger comes after Trump appealed to his supporters to help him send $464 million as a deadline loomed.
Trump’s appeal, delivered through his joint fundraising committee, urged supporters to donate $20.24 to $3,300 or more. In the message, he also claimed that New York Attorney General Leticia James was after his property, specifically his Trump Tower.
Showing his displeasure at the possibility of his property being seized, Trump vehemently declared in the segment, “KEEP YOUR DIRTY HANDS OFF TRUMP TOWER!”
The 77-year-old claimed that his legal troubles were a “witch hunt” supported by President Joe Biden, although Biden had previously denied having anything to do with Trump’s legal matter.
“So before the day is over, I’m calling on ONE MILLION Pro-Trump patriots to join and say: STOP THE JOB HUNTING AGAINST PRESIDENT TRUMP!” Trump’s message was read.
Letitia James Ready to Seize Donald Trump’s Assets
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NY AG previously told ABC News reporter that he was prepared to seize Trump’s assets if he couldn’t raise the money to pay his fine. James stated that he had his eyes set on Trump’s 40 Wall Street building.
“If he doesn’t have the funds to pay the judgment, then we will get the judgment enforcement mechanism in court, and we will ask the judge to confiscate his assets,” he said.
“We’re ready to make sure that judgment is paid to New Yorkers, and yes, I see 40 Wall Street every day,” James added.
The AG also slammed the former president’s claim that his case was “victimless,” noting that “Financial fraud is not a victimless crime.”
“He was involved in this huge amount of fraud. It’s not just a simple mistake, a little mistake; the variation is greatly exaggerated, and the level of deception is staggering,” James continued. “If the average New Yorker goes to the bank and hands over a fake document, the government will throw the book at them, and the same goes for former presidents.”
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Source: thtrangdai.edu.vn/en/
