On Friday, December 20, 2024, shares of Trump Media & Technology Group (TMTG) dropped by about 6.9% after it was revealed that President-elect Donald Trump moved his 53% ownership in the company to a revocable trust.
This transfer includes 114.75 million shares, worth more than $4 billion based on the stock’s last closing price of $35.41. Trump remains the sole beneficiary of the trust, while his son, Donald Trump Jr., will have voting and investment control over the shares.
Trusts are commonly established to bypass the public probate process when distributing wealth to beneficiaries and can also help reduce estate taxes.
Although Trump is not part of the board at Trump Media & Technology, he has been the company’s largest shareholder since its inception.
This move goes against Trump’s statement from November, when he said he had no plans to sell his TMTG shares, which is the parent company of the Truth Social platform.
TMTG, which started trading publicly in March 2024 under the ticker DJT, has faced significant financial struggles, reporting a loss of over $58 million in 2023 and a net loss of $327.6 million in the first quarter of 2024.
Inputs from Reuters.
Stay informed with our financial updates, stocks, bonds, commodities. Get global & political insights. Follow us & enable notifications for the latest updates.
