In approving the merger, shareholders of Digital World Acquisition Corporation will become shareholders of Trump Media & Technology Group, which will trade on the stock market under the stock symbol DJT.
Former United States' President, Donald Trump’s social media company has completed a merger with a cash-rich shell company, raising Trump’s wealth by billions and potentially providing him a fresh source of cash to pay his mounting legal bills.
In approving the merger, shareholders of Digital World Acquisition Corporation will become shareholders of Trump Media & Technology Group, which will trade on the stock market under the stock symbol DJT.
The deal will pump more than $300 million into Trump Media, which has all but exhausted its available cash and will allow Truth Social, the company’s flagship digital media platform, to keep operating.
Based on Digital World’s stock price of $44 a share just before the vote announcement, Trump Media will debut with a market value of more than $5 billion. That means Trump’s personal stake will be worth more than $3 billion.
Shares of Trump Media could begin trading under the new stock symbol as soon as next week.
Shareholders in Digital World Acquisition Corp. (DWAC) approved the merger with former President Trump’s media startup on Friday teeing up Truth Social’s stock market debut and a potential $3.5 billion windfall for Trump.
The long-delayed merger between the blank check company and Trump Media & Technology Group received regulatory approval from the Securities and Exchange Commission (SEC) last month.
Trump stands to make about $3.5 billion from the deal, given the nearly 79 million shares he would control in the newly merged company.
The potential windfall comes as the former president struggles to secure a $464 million bond in his New York civil fraud case.
Trump’s lawyers admitted earlier this week that it was “impossible” to secure the full appeal bond due to a lack of cash on hand.
If Trump cannot secure the half billion-dollar bond by Monday, he could risk the seizure of his assets. The New York attorney general’s office has taken a first step toward seizing Trump’s golf resort and private estate known as Seven Springs, after filing judgments in Westchester County.
Trump is restricted for six months from selling any his shares or using them as collateral for a loan, although he could ask the board of the merged company to waive that rule for him.
Trump Media said in a statement before the vote that “the merger will enable Truth Social to enhance and expand our platform.”