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Trump’s Financial Tornado: Truth Social’s Public Debut Could Net Him Billions Overnight

Trump’s Financial Tornado: Truth Social’s Public Debut Could Net Him Billions Overnight
Creator: Jay Paul | Credit: REUTERS

In a move that has caught the attention of Wall Street and Main Street alike, Donald Trump's social media venture, Truth Social, is poised to become a publicly traded entity, potentially enriching the former president by an estimated $4 billion.

An overnight success it seems for the former president, following his legal struggles.

The path to public trading was paved when shareholders of Digital World Acquisition Corp. (DWAC), a special purpose acquisition company (SPAC), voted in favor of merging with Trump Media & Technology Group (TMTG), Truth Social's parent company.

This merger is a critical step in bringing Truth Social to the broader market, where it will trade under the ticker symbol previously associated with Trump's ventures.

The financial implications of this deal are significant for Trump, who is expected to own a dominant stake in the new public entity.

With nearly 79 million shares to his name, multiplied by DWAC's current stock price, the value of Trump's holdings could surpass the $3 billion mark.

However, due to a lock-up provision, Trump will not be able to liquidate his shares immediately.

This development comes at a crucial time for Trump, who faces a series of legal challenges and financial pressures, including a substantial judgment in a civil fraud lawsuit.

The potential influx of wealth from Truth Social's public trading could provide a much-needed financial buffer for the former president.

Despite the optimism surrounding the merger, DWAC has highlighted several risks for investors, including the high failure rate of new social media platforms and TMTG's expectation of operational losses in the foreseeable future.

Moreover, Trump's control over the company could lead to decisions that prioritize his interests over those of other shareholders.

As Truth Social prepares to enter the public market, the world watches to see if this platform will disrupt the social media landscape or if it will follow the fate of Trump's previous ventures into the stock market.