Former President Donald Trump stands to make billions after shareholders of Digital World Acquisition Group approved a merger with his social media platform, Truth Social. The newly combined entity, Trump Media, will encompass both a media business and Truth Social, with plans to begin trading under the ticker symbol DJT. Digital World, a special-purpose acquisition company (SPAC), faced numerous challenges before the merger was finalized, paving the way for the new stock to go public.
While the potential for significant financial gains exists for Trump and other stakeholders, any proceeds will not be immediately accessible due to a six-month lock-up period following the IPO. Trump currently faces a substantial bond deadline related to a legal judgment against him in New York, as well as mounting legal expenses in various federal and state cases. Truth Social was launched as a response to Trump’s removal from mainstream social media platforms following the Capitol riot, but has struggled to achieve significant growth since its inception.
With Trump holding a majority stake in the new entity, the success of DWAC stock leading up to the public launch of the company will determine the extent of his financial benefit. Despite trading at around $43 at mid-day, the stock has garnered interest from retail investors as a symbol of Trump’s political aspirations. Alongside Trump, former Republican Congressman Devin Nunes, who now leads Trump’s media venture, is poised to also benefit from the merger.
