Sat. Jul 27th, 2024

Trump social media merger approved by DWAC shareholders, deal could net ex-president $3 billion

By 37ci3 Mar22,2024



Shareholders Digital World Acquisition Corporation voted Friday to approve the merger with Donald Trump‘s social media company, a deal that could net the former president $3 billion or more.

Voting DWAC It comes nearly two and a half years after shareholders announced plans to merge with the so-called special-purpose buyout firm. Trump Media and Technology Groupa private firm that owns Truth Social software platform.

It also comes as Trump faces the prospect Monday that New York Attorney General Letitia James will try to collect on a $454 million civil fraud lawsuit against him.

If approved as expected, shares of the newly combined company could begin trading publicly next week under the ticker symbol DJT, which bears Trump’s initials.

Trump’s long-defunct casino and hotel company also traded under the ticker symbol.

Several recent lawsuits filed over the terms of the merger did not affect the voting schedule.

Trump would own about 80 million shares in the combined company.

At DWAC’s current trading prices, that would be worth about $3 billion or more, though it’s unclear what the combined company’s opening share price would be.

This potential windfall for Trump, while massive, would not be immediate, at least under the current terms of the deal. Trump will be barred from selling shares of the combined company for at least six months.

It’s possible the board could vote to allow Trump to sell shares before then. According to the slate of nominees, the board could include people close to Trump, including his son Donald Trump Jr., former wrestling executive Linda McMahon and former Trump trade representative Robert Lighthizer.

If the board signs off on lifting the stock lockup, it could quickly free up a large source of cash for Trump, the presumptive Republican presidential nominee this year.

Trump is currently facing huge legal claims from his criminal and civil attorneys and has been awarded more than half a billion dollars in damages in three separate civil cases.

Trump earlier this week asked a New York appeals court to stay the $454 million fraud conviction as he seeks to overturn the verdict in the case. That court has not yet ruled on his request.

In the lawsuit, Trump’s attorneys said he did not have enough money to provide bond companies as collateral for a bond that would secure the judgment and prevent James from collecting.

But in a Truth Social post on Friday, Trump claims, “I currently have about five hundred million in cash.”

This is an evolving story. Please check for updates.



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By 37ci3

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