Trump’s Media Merger Set to Yield $3.5 Billion Following Approval

Former US President Donald Trump’s social media venture has successfully merged with a cash-rich shell company, significantly boosting Trump’s wealth and potentially offering him a new source of funds to cover his growing legal expenses.

The merger, approved by Digital World Acquisition Corporation shareholders, transitions them into Trump Media & Technology Group shareholders. This move allows Trump’s company, which includes the flagship digital platform Truth Social, to continue its operations with a fresh infusion of over $300 million.

With Digital World’s stock valued at $44 per share just before the merger announcement, Trump Media is set to debut on the market with a value exceeding $5 billion, making Trump’s stake worth over $3 billion.

Trading of Trump Media shares under the new symbol DJT could commence as early as next week following the merger approval by Digital World Acquisition Corp. shareholders. This move could potentially yield a $3.5 billion windfall for Trump.

Despite delays, the merger between the blank check company and Trump Media received regulatory clearance from the Securities and Exchange Commission (SEC) last month.

Trump’s potential $3.5 billion gain comes amid financial challenges, including difficulties securing a $464 million bond in a New York civil fraud case. His legal team recently admitted struggles obtaining the full bond due to limited cash reserves.

Failure to secure the bond by Monday could lead to asset seizure, with the New York attorney general’s office already taking steps to seize Trump’s properties, such as his golf resort and private estate.

Trump faces a six-month restriction on selling or leveraging his shares, although he could seek a waiver from the merged company’s board.

Trump Media’s optimism about the merger will empower Truth Social to expand and improve its platform.