Shareholders approved the debut of Donald Trump’s media company into the public market, allowing Trump Media & Technology Group to merge with Digital World Acquisition. This move comes despite ongoing legal issues and scrutiny.
Trump, who owns 60% of the company, may use this stake to deal with legal debts. The merger brought $300 million to Trump Media, but some financial experts doubt its $6 billion valuation.
As part of the deal, major investors, including Trump himself, are barred from selling shares for six months. This restriction could limit Trump’s ability to address legal obligations. The board of Trump Media, which includes many of Trump’s allies, will decide on any exceptions to this rule.
Trump’s media venture faces financial skepticism (Via Joel Goldberg/Shutterstock)
Trump’s media venture, Truth Social, serves as his main online platform aimed at his supporters. However, it trails far behind mainstream platforms in terms of user engagement.
The merger faced delays due to various hurdles and investigations, including probes by the SEC and the Justice Department. Trump had considered selling Truth Social to Elon Musk previously, but legal disputes and uncertainties arose.
Retail investors of Digital World, hopeful for gains, showed strong support for the merger. One investor, known as “Captain DWAC,” celebrated the successful vote, highlighting the intense interest surrounding the merger.
Despite legal challenges and doubts about its finances, Trump Media going public represents a significant step in Donald Trump’s activities after his presidency, increasing his influence in the media.
