Marty Davis, a wealthy Minnesota businessman, has been a strong supporter of former President Donald J. Trump, contributing significant amounts of money to help elect him in 2020. In October 2021, when Trump’s social media company announced plans to go public by merging with another company, Davis was one of the first to lend money to the company to help finance the launch of its Truth Social platform. Davis contributed $5 million to Trump Media & Technology Group, part of the $40 million raised from private investors, many of whom have supported Mr. Trump politically and are now shareholders in the social media company.
Among the early backers of Trump Media were wealthy individuals such as two Texas billionaires, a Florida hedge fund manager, and a trust linked to a Russian American financier with ties to a former high-ranking Russian government official. The loans provided by these investors were designed to convert into shares at a price of approximately $22 per share, with the company trading much higher after its merger was completed. It is unclear whether any of the early investors have sold their shares for a profit since the company went public.
Questions have been raised by ethics experts regarding potential conflicts of interest and undue influence over Mr. Trump due to the stock holdings and investments made by various individuals in Trump Media. If Mr. Trump were to return to the White House and retain his stake in the company, there could be concerns about foreign actors or special interests attempting to influence him through advertising on the company’s Truth Social platform. Trump’s stake in the company is valued at approximately $3 billion, while Trump Media itself is currently valued at around $5 billion.
Some of the investors in Trump Media, like Texas oil and gas billionaire Karl Pfluger, have limited political connections to Mr. Trump, despite providing substantial financial support. However, others, such as Kenny Troutt, a retired telecommunications executive from Dallas who has donated significantly to Mr. Trump’s political efforts, have a more direct political association. The company has faced criticism and scrutiny, with allegations of outdated and manipulated documents provided to the press by detractors.
Trump Media founders Wes Moss and Andy Litinsky, former contestants on Trump’s reality show “The Apprentice,” managed the fundraising efforts for the company before separating from the organization. The loan agreements reviewed by The Times were supplied by lawyers representing a former Trump Media employee involved in a whistleblower complaint to the Securities and Exchange Commission concerning allegations of premature merger talks and securities law violations. The company is currently facing legal disputes with its former associates over equity stakes in the company.
