Former President Donald Trump’s media venture, Trump Media & Technology Group, has been given the green light to merge with Digital World Acquisition Corp., a move that could potentially make Trump a billionaire once again.
The merger approval comes after weeks of speculation and excitement surrounding the deal, with Trump set to own almost 79 million shares of the combined company. Based on Digital World’s latest stock price, these shares could be valued at a staggering $3 billion.
However, the road ahead for Trump Media may not be smooth sailing. Digital World’s stock has been on a rollercoaster ride recently, driven by small-time investors which caused the stock price to fluctuate wildly before dropping nearly 14% on the day of the merger approval.
This is not the first time Trump has ventured into the stock market, with his previous endeavor with Trump Hotels and Casino Resorts in 1995 ending in bankruptcy and delisting from the NYSE.
Trump Media also faces several risks, including financial losses, a high failure rate for new social media platforms, and potential conflicts of interest due to Trump’s substantial stake in the company. The company’s board will include key figures from the Trump administration, including Donald Trump Jr. and former Rep. Devin Nunes.
One of Trump Media’s main products, Truth Social, reportedly has around 5 million active users as of February. Trump will now have to disclose quarterly financials and material news to federal regulators, as the company becomes publicly traded.
As Trump Media prepares to enter the public market, the world will be watching closely to see if Trump’s new media empire can succeed where others have failed.
