Donald Trump's media company, Trump Media and Technology Group (TMTG), will merge with a publicly traded vehicle after a favorable vote at a general meeting on Friday, a development that is expected to unlock a multi-billion windfall. dollars for the former American president.
The outcome of this merger project still appeared uncertain before the general meeting, because the vote had been postponed several times for two and a half years due to lack of quorum.
This IPO should offer a breath of fresh air to Donald Trump, whose financial situation is precarious.
The real estate developer said this week that it was unable to raise a guarantee of $454 million, necessary to suspend, during an appeal, a civil judgment handed down in February.
At the end of this trial, Donald Trump was convicted of lying about the value of his assets, in particular to obtain bank loans.
Donald Trump promised Friday that if he is inaugurated on January 20,
“the 47th president, (he) will restore the greatness of New York
,” the megalopolis voting Democratic.
To win in November against President Joe Biden, he assured that he had
“nearly $500 million in cash, a significant part of which is intended to be used in (his) campaign”
.
Three billion dollars of valuation
Concretely, TMTG will merge with Digital World Acquisition Corp (DWAC), a listed vehicle - also called SPAC - whose sole purpose is to allow a company to access the Stock Exchange more easily than through the traditional route of an IPO. good and due form.
TMTG, of which Donald Trump himself is the main shareholder, will control several tens of millions of shares in the new listed company.
According to several estimates, his stake would be valued at more than $3 billion at the current share price.
The agreement between TMTG and DWAC provides for a six-month lock-up period during which existing shareholders cannot sell their shares on the market.
However, nothing prevents Donald Trump from offering his securities as collateral to the courts or from obtaining a loan based on the value of these securities.
Paradoxically, the media company of the former American head of state has only limited activity.
She oversees Donald Trump's social network, Truth Social, launched in February 2022, which has only generated a few million dollars in turnover since its creation.