Donald Trump is once again making headlines as his social media website, Trump Social, is set to become public in a merger with Digital World Acquisition Corp. Trump Social has been operating as a private company since its introduction in 2022 and has accumulated about five million active users during that time.
After shareholders approved the merger, Trump’s media website will now be publicly traded on NASDAQ. With this merger, Trump is set to own around 79 million shares, valued at nearly $3 billion based on Digital World’s current stock price. This will boost him financially, especially now that he is dealing with legal battles that require over $454 million.
However, besides the potential gains, Trump will not be able to cash out immediately due to a “lock-up” provision, which could affect his liquidity in the short term.
Trump’s Reputation Worries Investors
Digital World’s stock has also experienced fluctuations, with smaller investors driving up prices in anticipation of the merger. In the long run, the stock prices could slightly reduce, affecting Trump’s current valuation. Some investors are also worried about the company’s fate due to Trump’s history in the stock market, notably his venture with Trump Hotels and Casino Resorts, which ended in bankruptcy. Investors are also concerned about the former president’s tight grip on voting interests and the possibility of financial losses within Trump Media.
Trump Media Board Voted by Shared Holders
After the merger, notable personalities such as Donald Trump Jr. and former Republican Rep. Devin Nunes will hold seats on Trump Media’s board. The other members of the board include Robert Lighthizer, Linda McMahon, and Kashyap “Kash” Patel. Digital World Acquisition Corp shareholders approved these, casting their votes on Friday.
Truth Social vs The Competition
Truth Social has been in the social media business since 2022. It was created after Donald Trump was banned on several platforms, including Twitter and Facebook. The platform currently has around five million active users, which is still far below mainstream social networks like TikTok, Instagram, and Facebook, which have billions of users.
This low user count could affect the site’s revenue. In addition to the limited number of users, the platform has a lot of controversial content that could push away several mainstream advertisers, further affecting the platform’s potential to generate more revenue. Our fingers are crossed to see how Trump Social evolves now that it is a publicly-traded company.
