DWAC Merger Approved: Trump’s Truth Social Set to Go Public
DWAC: Shareholders have given their approval for the merger, allowing Trump’s Truth Social to proceed with going public.
Starting Monday, the stock’s ticker will change to $DJT, reflecting Trump’s initials. With this approval, Trump’s ownership stake is now valued at approximately $3.5 billion, and Truth Social is anticipated to commence public trading with an estimated market worth of $6 billion.
Following the merger approval, Trump Media would instantly acquire 87.5 million shares, with the potential for an extra 30 million shares if the stock sustains a value exceeding $17.50 for 20 consecutive trading days. With Trump’s potential ownership of 127.5 million shares, the estimated value could reach approximately $5.6 billion at current market prices.
Cramer suggests that Trump should seek approval before selling his shares in the parent company of Truth Social, as reported by CNBC. Cramer acknowledged Trump’s financial challenges and the potential for selling his stock in Trump Media to alleviate them. However, he emphasized the uncertainty of the stock market and the difficulty in predicting the future value of the company.
The appeals court’s decision to lower the bond from $454 million to $175 million, along with extending Trump’s bond deadline by 10 days, likely influenced DWAC’s surge on Monday. This reduction eased worries about Trump selling majority stock to cover a bond exceeding $400 million.
As per the existing agreement, Trump is prohibited from selling company shares for a minimum of six months. The merger will furnish Trump with the funds essential for the expansion of his social media platform, Truth Social, which debuted in February.
Today’s movement in the share price of Trump Media & Technology Group has resulted in short sellers facing $61 million in mark-to-market losses, according to S3 Partners.
Short sellers have incurred mark-to-market losses of $158 million year-to-date targeting Digital World Acquisition, the parent company of Trump Media & Technology Group, according to S3 Partners.
Trump Media, $DJT, purportedly amassed $3.4 million in sales throughout the past nine months. With a market capitalization currently standing at $7.5 billion, the company is valued at over 1600 times its sales. In contrast, Nvidia, $NVDA, is trading at 38 times its sales, serving as a point of comparison.
Update
Donald Trump has initiated a lawsuit against two co-founders of Trump Media & Technology Group (DJT), as reported by Bloomberg. He alleges that they improperly established the company and should not receive any stock in it.
Trump Media & Technology Group (TMTG), the social media company established by former President Donald Trump, has initiated legal proceedings against two of its co-founders, Wesley Moss and Andrew Litinsky. The lawsuit, lodged in a Florida court on March 24, asserts that the co-founders mishandled the company, engaged in imprudent actions, and inflicted substantial harm on its reputation and business activities.
As per the lawsuit, Moss and Litinsky, both former contestants on Donald Trump’s reality show “The Apprentice,” faltered in their leadership positions, resulting in a negative corporate atmosphere and a turbulent rollout of TMTG’s social media platform, Truth Social. The legal action additionally alleges that the co-founders recruited an inadequate team to oversee the platform’s creation and fostered a hostile environment within the organization.
Update:
Trump Media shares have to lose a lot more before a massive special bonus due to the former president and his corporate insiders is at risk
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