Former President Donald Trump is poised to make a lucrative return to the stock market as shareholders of Digital World Acquisition Corp. voted to approve a merger with Trump Media & Technology Group, the company behind the social networking site Truth Social. This decision will allow Trump Media to begin trading on the Nasdaq stock market, with Trump set to own a majority of the combined company, which could be valued at nearly $3 billion.
This move comes at a crucial time for Trump, as he navigates a costly legal battle over a $454 million fraud lawsuit. However, despite the potential windfall, Trump will not be able to immediately cash out his shares due to a “lock-up” provision that restricts insiders from selling for six months.
Digital World’s stock price has been volatile, with small-time investors driving up the price in anticipation of the merger, but seeing a significant drop after the approval. This echoes Trump’s previous stock market venture with Trump Hotels and Casino Resorts in the 1990s, which ultimately ended in bankruptcy and delisting from the NYSE.
The merger approval also includes a slate of board members, including Donald Trump Jr. and former Republican Rep. Devin Nunes. The deal faced legal challenges and regulatory scrutiny leading up to the vote, but ultimately moved forward with plans to bring Truth Social to the public market.
Truth Social was launched in response to Trump’s ban from major social platforms, becoming a platform for his message in the lead-up to the 2024 election. While user numbers have not been disclosed, the platform has attracted millions of users and faces similar challenges to mainstream platforms in terms of content moderation.
As Trump Media prepares to go public, it will be required to disclose financial details and adhere to regulations governing publicly traded companies. This move signifies a new chapter for Trump’s media business and could have significant implications for the future of social media platforms.