Trump's Truth Social Set to Shake Up Nasdaq: A Rollercoaster Ride for Digital World Acquisition Corp.

According to the AP, Trump Media & Technology Group, whose main offering is the social networking site Truth Social, founded by the former president, will start trading on the Nasdaq stock exchange on Tuesday. In a vote on Friday, shareholders of the publicly listed shell firm Digital World Acquisition Corp. approved an agreement to combine with Trump's media company. Digital World's stock has fluctuated. The approval of the merger caused the shares to plummet 13.7% on Friday. It shot up 35.2% to $49.95 on Monday.

In the first nine months of last year, Trump Media lost $49 million, earning just $3.4 million in sales and incurring $37.7 million in interest costs. Nearly 79 million shares, valued at over $4 billion, will belong to Donald Trump, who would control the majority of the merged business.

However, Trump will not be able to cash out his Palm Beach, Florida, stake anytime soon unless the board of the company amends a "lock-up" provision that forbids insiders from selling newly issued shares for a period of six months. Trump is required to pay a $175 million bond in his New York civil fraud case. Truth Social's user count has not been revealed by Trump Media yet, but since the business became public, additional details will be made available.

According to research company Similarweb, there were almost 5 million active visitors of the website and mobile apps in February. Although significantly less than Facebook's 3 billion and TikTok's more than 2 billion, it is still more than other "alt-tech" competitors like Parler and Gettr. The Trump Media & Technology Group's common stock will trade under the ticker "DJT."


Get latest news delivered daily!

We will send you breaking news right to your inbox

© 2024 Wayne Dupree, Privacy Policy