Trump Media & Technology Group, the parent company of Truth Social, made headlines on Monday with the announcement that its merger with a publicly traded shell company has been finalized. This development paves the way for the commencement of trading on the stock market on Tuesday.
Former President Donald Trump, serving as chairman and the primary shareholder of the newly formed entity, stands to reap substantial financial gains from the multi-billion dollar deal. The merger between Trump Media and Digital World Acquisition Corp. has led to a surge in the shares of Digital World, soaring by 21% initially and eventually climbing by 39% to reach around $51 per share.
Trump’s stake in the company is estimated to be valued at approximately $4 billion at current market prices, though there are restrictions in place that may limit his ability to sell or leverage the value of his stock for several months.
Trading under the ticker symbol “DJT” on the Nasdaq Stock Market is slated to commence on Tuesday, marking a significant milestone for both companies involved.
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Devin Nunes, the CEO of the newly merged entity, expressed his commitment to challenge the dominance of Big Tech and uphold the principles of free expression. He emphasized the company’s dedication to providing a platform for unfettered discourse in the face of increasing censorship.
Despite the enthusiasm surrounding the merger, some experts caution that the market may be overvaluing Trump Media, citing concerns about the company’s financial performance. Trump Media reported revenue of only $3.4 million in the first nine months of the previous year, accompanied by a substantial net loss of $49 million over the same period. Additionally, there are indications of a decline in Truth Social’s user base, raising questions about its long-term viability compared to competitors like X (formerly Twitter).
The anticipation surrounding the merger with Trump Media has sparked a frenzy reminiscent of previous market surges, such as the Tupperware stock rally in July and the phenomenon of meme stocks like AMC Entertainment and GameStop during the pandemic. Online communities, including the “The DWAC Shareholder Group” on Truth Social boasting over 8,000 members, have been abuzz with discussions, memes, and messages in support of the merger and its implications.