On Monday, CNN highlighted a potential significant financial upswing for former President Donald Trump, despite persistent challenges to his business endeavors. The focal point of this financial potential is Trump’s association with Truth Social, a social media platform that, despite facing scrutiny and difficulties, is poised for a promising future. Originally valued at approximately $700 million in 2022 and subsequently experiencing a dip to less than $100 million, Truth Social is now on the brink of a possible initial public offering. If this materializes, Trump’s shares in Truth Social could skyrocket, reaching an astounding valuation of $4 billion.
It’s important to note that Trump would be subject to a six-month waiting period before being able to liquidate his stocks, but this delay seems to have little impact on the excitement surrounding the potential surge in his wealth.
The inception of Truth Social was announced in October 2021 as a direct response to perceived bias against conservative voices on mainstream social media platforms like Twitter and Facebook. After Trump’s suspension from major social media outlets following the January 6, 2021, breach of the United States Capitol, he sought alternative means of communication with his base. Truth Social was introduced as a “big tent” social media platform, emphasizing free speech and offering a safe space for conservative discourse without the fear of “cancel culture.”
Functionally resembling Twitter, Truth Social allows users to post messages (“Truths”), re-post others’ messages (“Re-Truths”), and engage with content in a familiar social media environment. This platform is part of a broader trend where alternative social media platforms gain popularity among conservative users in the United States.
In February 2024, Truth Social achieved approval from U.S. regulators for a public listing through a merger with the special purpose acquisition company, Digital World Acquisition Corp (DWAC), as reported by Axios. This approval marked a significant milestone for the deal, overcoming setbacks faced just a day earlier. DWAC announced that the U.S. Securities & Exchange Commission had approved its registration statement, leading to a nearly 15% surge in shares and elevating DWAC’s market valuation to around $1.86 billion.
However, there’s a complication in the form of former DWAC CEO and current director Patrick Orlando, who raised concerns about additional compensation. Orlando, owning 14.8% of DWAC’s shares and wielding substantial control over its founder shares, has the potential to disrupt the merger by blocking it or demanding alterations to the agreement.
This development occurs against the backdrop of intensified scrutiny into Trump’s financial affairs and business empire, with adversaries hoping to diminish his influence. On Friday, Judge Arthur Engoron ruled that Trump must pay over $350 million and is prohibited from conducting any business in New York State for three years. In January, a Manhattan jury ordered Trump to pay a substantial $83.3 million to E. Jean Carroll in a defamation lawsuit. The decision followed Carroll’s 2019 accusation that Trump had raped her in a department store dressing room many years prior.
