On Friday, the shareholders of Digital World Acquisition Corporation have approved a merger with Donald Trump’s media company. This happened just days before the former president is facing a deadline to pay a $464 million bond based on a New York civil fraud judgement which he is currently appealing via Mediaite.
Trump Media & Technology Group will now trade on the stock market under DJT.
The New York Times had reported that the deal would put $300 million into Trump’s media company which will give a cash infusion to keep Truth Social running. The merger also means that the stock market price for Trump’s media company will reportedly be $5 billion, giving Trump a personal stake of $3 billion.
That wealth on paper may not help the former president in covering the bond though, as he can’t sell any of his shares for the next six months.
NY Times first reported the merger:
Based on Digital World’s stock price of $44 a share just before the vote announcement, Trump Media will debut with a market value of more than $5 billion. That means Mr. Trump’s personal stake will be worth more than $3 billion.
Shares of Trump Media could begin trading under the new stock symbol as soon as next week.
The deal’s approval comes as Mr. Trump is facing a Monday deadline to cover a $454 million penalty in a civil fraud case in New York. He is restricted for six months from selling any his shares or using them as collateral for a loan, although he could ask the board of the merged company to waive that rule for him.
Trump’s lawyers previously claimed in a court filing that to find someone to underwrite Trump’s massive bond was a near impossibility after they tried multiple sources for the money.
New York Attorney General Letitia James’s office has recently pushed back on this claim. The attorney general could at some point begin targeting Trump properties if the bond goes unpaid.
