USA
Reports: Trump returns to the stock market with media deal
He wants to go back to the stock market: former US President Donald Trump. photo
© Jeff Dean/AP/dpa
High legal fees and penalties: Donald Trump needs money. A lucrative IPO could be just what he needs.
Shareholders of a shell company, Digital World Acquisition Corp., reportedly voted in favor of a long-planned merger with Trump’s media company, Trump Media & Technology Group, which operates the Truth Social network he founded. The merger and IPO will provide the loss-making network with a much-needed cash injection, the newspapers further reported.
Trump is not allowed to sell shares immediately
The merged company Trump Media will soon be traded on the stock exchange with the abbreviation “DJT” – based on Trump’s initials. According to the Washington Post, Trump will own about 60 percent of the new company. According to a contractual clause in the merger, he may only sell his shares after six months at the earliest. Critics expect the share price to fall because, according to annual reports, Truth Social is losing money with relatively low sales.
The real estate entrepreneur Trump (77) wants to move into the White House for the Republicans again in November. However, he is currently making a lot of headlines with the lawsuits against him. In addition to four criminal proceedings, the main proceedings of which have not yet begun, there are also civil proceedings against Trump. In two first-instance cases in New York, he has to pay a total of more than half a billion dollars for penalties and interest due. In a fraud case, Trump must pay more than 450 million dollars (around 415 million euros), including interest, by Monday or make a corresponding deposit. Until recently, it was unclear whether Trump would be able to meet the deadline. Trump has appealed the ruling.