Former President Donald Trump’s social media company is set to go public Tuesday after its high-profile merger with Digital World Acquisition Corp., a shell company.
The merged company began trading on the Nasdaq exchange under the ticker symbol DJT. Its share price spiked in early trading before closing up 16% at just under $58.
Shareholders agreed to the merger between Trump Media and Technology Group and DWAC on Friday after legal wrangling and an inquiry from the Securities and Exchange Commission.
The deal is lucrative for Mr. Trump, at least on paper. He owns nearly 60% of shares in Trump Media, a stake that could be worth more than $3 billion, though experts question whether the company will hold its value and have likened it to a hype-driven “meme stock” without underlying worth.
The former president is promoting his social media platform this week with short posts of praise.
“I LOVE TRUTH SOCIAL, I LOVE THE TRUTH!” Mr. Trump wrote Tuesday.
Mr. Trump, the presumptive GOP presidential nominee, is facing a cash crunch as he cobbles together a $175 million bond to stave off collection of a $464 million judgment, plus interest, in the business fraud suit brought by New York Attorney General Letitia James.
An appeals court slashed the bond amount on Monday and gave Mr. Trump 10 days to post it.
Even the lower amount would eat into Mr. Trump’s cash stores, elevating the significance of his windfall from the merger.
A lockup provision prevents Mr. Trump from selling his shares in the merged company for six months unless shareholders grant him a waiver, and it is unclear if he can leverage his shares for a loan to pay his legal debts.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
Please read our comment policy before commenting.