Trump Media & Technology Group, whose flagship product is social networking site Truth Social, will start trading on the Nasdaq.
Trump Media & Technology Group, whose flagship product is social networking site Truth Social, will start trading on the Nasdaq.

Trump Media Group Debuts on Nasdaq with Truth Social

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Trump Media & Technology Group, whose flagship product is social networking site Truth Social, will begin trading on the Nasdaq stock market on Tuesday.

Merger Approval and Shareholder Response:

In a Friday vote, shareholders of Digital World Acquisition Corp., a publicly traded shell company, approved a deal to merge with Trump’s media business. 

Digital World shares experienced volatility, with a 13.7% decline after the merger was approved on Friday, followed by a 22% surge to $45.40 in Monday’s trading.

Trump’s Stake and Lock-up Provision:

Former President Donald Trump is set to own most of the combined company — nearly 79 million shares, potentially valuing his stake at nearly $3 billion. 

However, Trump won’t be able to immediately cash out his stake due to a “lock-up” provision preventing insiders from selling shares for six months.

Legal Proceedings and Civil Fraud Judgment:

Trump attended a hearing on his criminal hush money case in New York on Monday, while a New York appeals court reduced his $454 million civil fraud judgment to $175 million if paid within 10 days.

Truth Social launched in February 2022, following Trump’s ban from major social platforms. Although user numbers haven’t been disclosed, research firm Similarweb estimates around 5 million active mobile and web users in February.

Financial Performance and Outlook:

Trump Media lost $49 million in the first nine months of last year, with minimal revenue and significant interest expenses. 

More financial information will be disclosed as a publicly traded company, shedding light on its performance relative to competitors like TikTok and Facebook.

Jean Martin

Jean Martin, a seasoned Correspondent Author at USA Guardian Magazine, specializes in transforming complex subjects into engaging narratives. With a keen eye for detail and a commitment to truth, her work spans politics, culture, and technology, enriching the magazine's diverse content. Jean's reporting not only informs but also inspires readers, showcasing her belief in journalism's power to drive change.

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