Donald Trump's fortune could rise by $3.4 billion: Here's how
Former US President Donald Trump's net worth could potentially surge by around $3.4 billion, if shareholders vote in favor of listing his enterprise, Trump Media and Technology Group. The firm, which runs the Truth Social tech platform, is considering going public via a merger with a special purpose acquisition company (SPAC), Digital World Acquisition. However, the process has hit a snag as Digital World has filed a lawsuit against sponsor ARC Global Investments for trying to postpone the deal.
Merger clause to delay Trump's potential profits
Despite the potential financial windfall, Trump won't be able to immediately capitalize on this increase in wealth. A clause in the merger agreement restricts major shareholders from offloading stock for six months after the merger. This limitation comes at a time when Trump's financial situation is being closely examined as he contemplates another run for the US presidency against current President Joe Biden.
Trump under financial strain amid civil fraud lawsuit
Last month, a New York judge ruled that Trump must pay $454 million following a civil fraud lawsuit. The former president was found guilty of manipulating property values to secure favorable loan and insurance rates. Despite the verdict, Trump has refuted any misconduct and plans to appeal. His legal team has stated it is "a practical impossibility" for him to secure a bond guaranteeing payment of the $454 million after 30 surety companies turned him down.
Post-merger business could boost Trump's stake by $3.4 billion
Should the merger go ahead, Trump would hold just under 79 million shares in the newly amalgamated company. The company will have a stock market ticker that includes Trump's initials, DJT. Based on Digital World's closing share price of $42.90 on Wednesday, his stake in the business after the merger would be valued at around $3.4 billion. This potential wealth surge hinges on the successful completion of the merger transaction.
Truth Social's financial results and Digital World's stock rise
Despite Truth Social's modest financial results, with a securities filing showing it lost $31.6 million since its 2021 launch and sales under $5 million, Digital World's shares have soared 145% this year. This increase in stock price is largely due to the company's meme stock status, which has been heavily promoted by amateur investors through internet memes.
