The Truth Social network, which former president Trump established in 2021, has the potential to yield a windfall of $3.5 billion for him. The transaction may be reported on the stock exchange next week, and Trump holds 58.1% of the company’s common shares. However, a lockout clause in the transaction stops Trump from selling or borrowing against his shares right away, so he might not be able to utilize the windfall to pay off his $464 million civil fraud verdict.
Truth Social is now worth an astounding $6 billion, thanks to the combined efforts of Trump’s fans who drove up the stock price. As a parent business, Trump Media & Technology Group (TMTG) is getting ready to go public through a merger with a special-purpose acquisition company (SPAC). With millions of dollars in the bank, TMTG insiders are getting set to cash out via the particular purpose acquisition corporation (DWAC). Legislator Devin Nunes (R-Calif.), who resigned from Congress to head Trump Media, will own less than one percent of the company, or $4.9 million.
In response to his suspension from X and Facebook, Trump founded Truth Social. On Monday, he must have a financial guarantee in place to pay the $464 million in disgorgement and pre-judgment interest that a New York judge imposed on him for engaging in “numerous acts of fraud and misrepresentation” to artificially inflate his net worth so that he could get better loan terms. Despite appealing the ruling, Trump maintains his innocence and denies any misconduct.
Trump Media lost $49 million on revenue of less than $3.4 million in the first nine months of 2023. According to the documents filed by the business, there is no way to tell how successful its social media platform is; operational risks have grown, and the corporation is deeply connected to the previous president.
Trump Media says it will lose money “for the foreseeable future,” its executives admit that most new social media platforms fail miserably.
