NEW YORK (AP) — Donald Trump is back on the New York Stock Exchange, which could bring him a significant amount of income.
Shareholders of Digital World Acquisition Corp., a Wall Street-listed company, approved a merger agreement with the former president’s media business. This means that Trump Media & Technology Group, whose main product is the social network Truth Social, will soon begin trading on the Nasdaq stock exchange.
Trump will be the largest shareholder in the combined company, with nearly 79 million shares. Multiplied by Digital World’s share price at Thursday’s close of $42.81, the total value of his package could exceed $3 billion.
The authorization comes at a time when the virtual Republican presidential candidate faces the most expensive legal battle: The payment of 454 million dollars in a lawsuit, as part of the political harassment from the left and the extreme left of which he has been a victim since he arrived in the White House.
New source of profits for Trump
Trump will not be able to immediately pocket his profit unless the company’s board modifies a clause that prohibits company insiders from selling newly issued shares for six months.
When a listed company agrees to buy an unlisted company, the latter takes its place in the market after shareholders approve the combination. If recent activity at Digital World is any indication, Trump Media shareholders could face some headwinds.
Many Digital World investors are small and medium-sized business entrepreneurs who helped the stock price more than double this year in anticipation of the merger. After the transaction was approved on Friday, shares fell as much as 12% before rebounding to be down 2.5% at midday.
Trump’s previous stock foray did not end well. Trump Hotels and Casino Resorts went public in 1995 under the symbol DJT, the same symbol that Trump Media will adopt. By 2004, the hotel and casino company had to file for bankruptcy and was delisted from the New York Stock Exchange.
Before the approval, documents submitted by Digital World to the regulatory authority outlined some of the risks faced by both its investors and those of Truth Social’s owner once Trump Media goes public.
Source: With information from AP.
