Former President Donald Trump is on track to potentially increase his social media fortune by $1.3 billion, as Trump Media plans to award him an additional 36 million shares if shares end trading above $17.50 on Tuesday. This would increase his stake in the company from 78.8 million shares to 114.8 million shares, valued at $4.1 billion. However, the actual value of Trump’s stake and the company itself remains unclear, with the company currently valued at $4.9 billion despite shares falling 55% below their peak in March.
According to Forbes’ calculations, Trump’s net worth was $4.7 billion on Monday, based on his existing shares in Truth Social and other assets. If his fortune were to increase by the expected $1.3 billion, his net worth would rise to $6 billion, potentially placing him among the world’s 500 richest people. However, the volatility of Trump Media’s stock raises doubts about the true value of Trump’s earnout award set to be announced.
There are concerns about the justification for Trump’s earnout award, as the company’s valuation appears to be divorced from its fundamentals. Questions also remain regarding Trump’s ability to sell or divest his shares in Trump Media as the majority shareholder, which could be subject to regulations. The stock’s 18% drop after the announcement of a possible stock offering indicates potential negative impacts on the company’s valuation and Trump’s stake.
Despite the uncertainty surrounding the valuation of Trump Media and Trump’s stake in the company, the potential increase in his net worth by $1.3 billion highlights his continued success in the business world. However, the true value of his social media fortune and the company he founded remain unclear, raising questions about the long-term viability of Trump Media in the ever-changing digital landscape. Trump’s potential rise in wealth also underscores the complexities of valuing assets in a volatile market environment.
