Former President Donald J. Trump’s social media firm on Friday accomplished a merger with a cash-rich shell firm, elevating Mr. Trump’s wealth by billions and doubtlessly offering him a recent supply of money to pay his mounting authorized payments.
In approving the merger, shareholders of Digital World Acquisition Company will turn out to be shareholders of Trump Media & Know-how Group, which can commerce on the inventory market beneath the inventory image DJT. The deal will pump greater than $300 million into Trump Media, which has all however exhausted its accessible money and can enable Fact Social, the corporate’s flagship digital media platform, to maintain working.
Primarily based on Digital World’s inventory worth of $44 a share simply earlier than the vote announcement, Trump Media will debut with a market worth of greater than $5 billion. Which means Mr. Trump’s private stake can be price greater than $3 billion.
Shares of Trump Media might start buying and selling beneath the brand new inventory image as quickly as subsequent week.
The deal’s approval comes as Mr. Trump is going through a Monday deadline to cowl a $454 million penalty in a civil fraud case in New York. He’s restricted for six months from promoting any his shares or utilizing them as collateral for a mortgage, though he might ask the board of the merged firm to waive that rule for him.
Trump Media stated in an announcement earlier than the vote that “the merger will allow Fact Social to boost and increase our platform.”
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