Trump Media & Technology Group, with its social networking site Truth Social, is set to begin trading on the Nasdaq stock market after shareholders of Digital World Acquisition Corp., a publicly traded shell company, approved a deal to merge with Trump’s media business. The stock of Digital World has seen volatility, slumping after the merger was approved on Friday but soaring on Monday to $49.95. Former President Donald Trump is expected to own most of the combined company, with nearly 79 million shares valued at almost $4 billion. However, Trump won’t be able to immediately cash out his stake due to a lock-up provision that prevents insiders from selling newly issued shares for six months.
In addition to his media business endeavors, Trump has been involved in legal proceedings, attending a hearing on his criminal hush money case in New York on Monday. A New York appeals court also reduced the amount he must post in cash or a bond while appealing a civil fraud ruling to $175 million. Truth Social was launched in February 2022, a year after Trump was banned from major social platforms like Facebook and Twitter following the Jan. 6 insurrection at the U.S. Capitol. Despite being reinstated on Facebook and Twitter, Trump has continued to promote Truth Social and has expressed his support for the platform. The user numbers for Truth Social have not been disclosed by Trump Media, but now that the company is publicly traded, more information is expected to be revealed. Research firm Similarweb estimates that the platform had around 5 million active users in February, which is lower than major platforms like TikTok and Facebook but higher than other alt-tech rivals such as Parler and Gettr.
Financially, Trump Media reported a loss of $49 million in the first nine months of last year, with minimal revenue of $3.4 million and interest expenses of $37.7 million. The common stock of Trump Media & Technology Group will trade under the ticker symbol “DJT.” The launch of Truth Social comes at a time when social media platforms are under scrutiny for their content moderation practices and competition is growing in the alt-tech space. Despite the challenges and controversies surrounding Trump’s media business, the company’s stock market debut is anticipated with interest.
The merger of Trump’s media business with Digital World Acquisition Corp. highlights the former president’s interest in expanding his presence in the media landscape. With the launch of Truth Social, Trump aims to provide a platform for his supporters and others who feel disenfranchised by mainstream social media platforms. The success of Truth Social and Trump Media & Technology Group will depend on various factors, including user adoption, revenue generation, and the company’s ability to compete with established platforms. The involvement of Trump in the company’s operations and the public scrutiny surrounding his business ventures add an additional layer of complexity to the situation. As the company’s stock begins trading on the Nasdaq, it remains to be seen how investors and the public will react to Trump’s latest foray into the world of social media.
Overall, the merger of Trump Media & Technology Group with Digital World Acquisition Corp. marks a significant development in Trump’s efforts to establish a presence in the media industry. The launch of Truth Social and the company’s stock market debut represent a new chapter in Trump’s post-presidential endeavors, as he navigates legal challenges and strives to carve out a space for himself in the competitive social media landscape. The success of Truth Social and Trump Media & Technology Group will be closely observed, as the platform seeks to attract users, generate revenue, and differentiate itself from other players in the market. Trump’s involvement in the company, along with regulatory and legal considerations, will also play a crucial role in shaping the future trajectory of the business. In the coming months, the performance of Truth Social and Trump Media & Technology Group will provide insight into the viability of Trump’s media ambitions and the broader trends in the digital media space.
