Truth Social, a social media startup founded by Donald Trump, is about to launch while the former president battles legal issues.
Following the judge’s decision to order the former president to pay $454 million in a fraud lawsuit in New York City due to his inflating property prices upon the banks, the president made an appearance in front of “the camera.”
As a final resort, Trump has filed an appeal with the appeals court, hoping to either have a lesser bond acknowledging his financial hardship or halt the judgment until the decision is rendered. Trump acknowledges that he must make inevitable financial payments after spending $50 million to settle his legal fees the previous year.
Now that Trump Media is about to make its public debut through its merger with Digital World Acquisition Corporation, the company may have finally seen the light after years of juggling legal visits and regulatory procedures. In addition to requiring shareholder approval by August 3, the merger is also subject to a lockup condition, which prevents shareholders from selling their shares. Many corporations use this strategy to preserve price stability and boost investor confidence.
However, because the incumbent has a significant stake in the media outlet, it is not implausible that companies may attempt to circumvent these rules. In addition to sending them shares or giving them to family members, he can seek for an exemption from the Board Digital World. The composition of the Trump Media board, which may include members of his son Donald Trump Jr. or those with significant administrative experience, would be more likely to facilitate the approval of such demands.
Trump Media is scheduled to go public after receiving approval from shareholders. Given the current value of Digital World’s stock, Trump’s 79 million shares are expected to be worth more than $3 billion. However, given Trump Media’s significant losses and little advertising revenue, the trading trajectory is still unclear, casting doubt on the company’s success in the market.
Following the transaction, the shareholders of Digital World—who are primarily individual investors—will become Trump Media stockholders. On Truth Social, a large number of these shareholders have been outspoken Trump backers.