Former President Donald Trump received the news this Friday It will help you free yourself from a heavy financial burden of your campaign: your media company Trump Media, owner of the social network Truth Socialcollaborated with another company and will be listed on the stock exchangeincreasing Trump’s wealth in billionsa potential new source of money to pay your the increase in legal costs.
The shareholders’ green light for this operation eliminates an important obstacle a long-delayed merger that will generate a multimillion-dollar profit for the former president at a time when he faces enormous financial and legal pressure and days before he has to pay $464 million for a civil trial in a New York court where he was convicted. for lying about the value of his assetsto obtain a greater amount of bank credit.
According to a preliminary vote total announced at the meeting, the majority of shareholders of Digital World Acquisition Corp, (considered a “ghost” company. or an empty shell whose sole purpose is to allow a company to go public more quickly than the traditional route of offering shares to the public), voted in favor of the deal to merge with Trump Media. The companies said the merger could close as early as next week.
Trump Media & Technology Group is born
The new company will be called Trump Media & Technology Group e will trade under the symbol DJT, Trump’s initials. He will own Trump’s social media platform Truth Social. The deal will inject more than $300 million in Trump Mediawhich has nearly exhausted its cash and will allow Truth Social, the company’s flagship digital media platform, to continue operating.
Truth Social, Donald Trump’s social network. Photo: APBased on Digital World’s share price $44 per share shortly before the announcement, Trump Media will debut with a market value of over $5 billion. This means Trump’s personal involvement It will be worth more than $3 billion.
“Through hard work, talent and luck, Today I have almost 5 billion dollars in cash, I will use a substantial portion of it in my presidential campaign,” Trump celebrated, in block letters, on his Truth Social account. He then continued his accusations against prosecutor Letitia James and said she wanted to take her money. “I didn’t do anything wrong except win the election in 2016,” Trump said. “
Shareholders voted in favor of the merger after years of legal and regulatory obstacles. However, some experts say there are numerous practical, financial and legal reasons why this deal is unlikely. resolve Trump’s looming liquidity crisis.
“President Trump you will not be able to immediately monetize that stake“Matthew Kennedy, senior IPO market strategist at Renaissance Capital, told CNN.
Trump faces a deadline this Monday pay $464 million bail in a civil fraud case of New York against him, and if he doesn’t, prosecutor Letitia James could try to seize his golf course and private property north of Manhattan, or other assets.
The agreement reached this Friday provides a mating period of six months during which the shareholders They cannot sell their securities on the market. But nothing would stop Trump from offering his shares as a guarantee of justice, or from obtaining a loan based on the value of these securities.
Source: Clarin
Mary Ortiz is a seasoned journalist with a passion for world events. As a writer for News Rebeat, she brings a fresh perspective to the latest global happenings and provides in-depth coverage that offers a deeper understanding of the world around us.