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Trump Says ‘I Like Truth Social’ One Day After DWAC Stock Falls Following Social Media Merger Vote

Digital World Acquisition Corp stock price chart in the days leading up to and including shareholder approval of the merger with Donald Trump’s social media company.


Donald Trump on Saturday, told his many online followers: “I LOVE SOCIAL TRUTH” – but shareholders of the newly merged company that will own this social media app might not be feeling so good after a sharp price drop the day before .

The shell company Digital World Acquisition Corp. I saw his share price plunge nearly 14% in the hours that followed shareholder approval Friday morning of a merger with the old presidentThe social media company made it public.

If that decline accelerates in the coming weeks, the value of Trump’s majority stake in the newly merged company, called Trump Media, could be somewhat less than the roughly $3 billion estimated before shareholders signed the agreement. agreement Friday.

DWAC stock, which hit a high of $58.72 per share on Jan. 23 as the long-stalled merger seemed more likely, was down to $44.20 per share as markets opened Friday morning. , just before the shareholder vote.

DWAC shares closed Friday afternoon at $36.94 per share.

After-hours trading saw the stock rebound a bit to $38.55 per share. But that’s still 12.7% lower than Friday’s opening price.

This decline could reflect concerns about whether Trump Media and Technology Groupwhich is in the process of merging with DWAC, may ultimately generate significant revenue – and whether Trump will try to cash in on his share sooner due to his numerous legal problems.

TMTG, owner of the Trump Social platform that Trump used on Saturday to proclaim his love for the app, reported losses of nearly $50 million in the first three financial quarters of 2023. It recorded less than 3, $5 million in revenue during this period.

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Meanwhile, Trump faces civil judgments topping half a billion dollars in federal and state courts in New York, in addition to mounting legal bills related to those cases and four criminal prosecutions as he seeks to overthrow the president. Joe Biden during the November elections.

Last week, Trump’s lawyers said in a court filing that he did not have the cash to secure an appeal bond to secure a $454 million fraud judgment in one of those cases . This would, for now, prevent the New York Attorney General’s Office from collecting the reward.

Under the terms of the merger, Trump, who will own at least 58% of Trump Media, will not be able to sell shares in the company for six months.

However, the new board, which is expected to include his son, Donald Trump Jr., and other close allies, could vote to lift that restriction, allowing him to sell his shares to cover his legal costs. Much sooner.

This, in turn, could cause Trump Media’s stock price to decline and cause other shareholders to sell their shares, causing the stock price to fall even further.

Trump Media will use the symbol DJT when it begins trading on the NASDAQ stock market starting next week.

This same ticker was used for Trump’s previous publicly traded company, Trump Hotels and Casinoswhose shares have been traded on the New York Stock Exchange since 1995.

This company lost money every year of its business and eventually filed for bankruptcy protection in 2004, the same year it was delisted from the stock exchange.

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