Trump social media firm takes off ahead of launch after SPAC deal

(Bloomberg) — Former President Donald Trump’s social media startup is moving ahead of its first season as a publicly traded company after the most high-profile blank-check deal in years.

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Trump Media & Technology Group Corp gained 20% in early premarket trading on Tuesday after completing its merger with Digital World Acquisition Corp. ​The deal provides Truth Social’s parent company with over $275 million of much-needed capital, and provides a windfall on paper. Trump faces a growing series of legal and financial troubles.

Should DWAC shares remain near current levels, Trump’s shares could eventually be worth more than $6 billion. However, they will be subject to a six-month lock-up agreement, as well as performance requirements that may temporarily hinder their ability to monetize the stock and ease their current cash crunch.

Read more: Trump’s wealth on SPACs reaches record $6.5 billion, cuts bonds

The company’s listing on Nasdaq under the symbol DJT will test Trump’s ability to grab the attention of individual traders and momentum investors who use it as a way to bet on his push for re-election. Its operations have struggled to generate profits so far, losing $49 million in the nine months to September, while delivering just $3.4 million in revenue.

Trump’s ownership of a roughly 60% stake in the company has made the listing symbolic of the potential Republican nominee’s ability to attract the attention of individual traders and momentum investors, who see it as a way to bet on his push for re-election. use in.

However, after two years of obstacles en route to a listing, including investigations by the Justice Department and the U.S. Securities and Exchange Commission, the money-losing company may have difficulty convincing some investors…

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