#TrumpMedia merger wins investor approval, netting #Trumppotential windfall
TFG will own ~60% of #TruthSocial, which at its current share price would be worth ~$3.3B.
A lockup agreement will prevent him from selling the shares for 6 months.
A long-delayed move that will open the owners of TruthSocial to stock-market investors & grant Trump a stake worth billions he could use to pay down his #legal#debts.
The vote Fri by investors in #DWA authorized the #SPAC, to merge w/ #TrumpMedia & #Tech Grp as part of a process that will avoid a more traditional #IPO. #Trump will own ~60%, which at DWA’s current share price would be worth ~$3.3B. He & other investors could earn tens of millions more shares through an “earnout” provision tied to the stock’s performance, DWA said in an #SEC filing.
The merger will net TrumpMedia $300M that DWA initially raised from investors.
#Trump’s allies & company execs will also be granted bundles of shares in the new company that could be worth millions. But trading on the #stockmarket will also open the company to more public scrutiny, & any drops in share prices would affect the value of those stakes.
Critics have said #TrumpMedia is a “#MemeStock” w/a >$6B valuation they say is out of sync w/its financial outlook. TrumpMedia lost $49M in the first 9 months of last yr & brought in just $3.4M in revenue, per #DWA#SEC filing.
#TrumpMedia, launched after an #insurrection, faces rebellion
4 suits involving the founding boosters of #TruthSocial threaten #Trump’s grasp on a massive financial haul
When #TMTG & its proposed merger ptr, #DWA, announced last month a shareholder vote on their long-delayed deal, it marked a final step for the owner of TS to become a public co potentially worth billions —most of which is owned [how much he can sell is limited] by Trump.