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Trump’s Truth Social Media Company Will Go Public On Tuesday
(CTN News) – On Tuesday, Trump Media & Technology Group, whose flagship product is the social networking site Truth Social, will begin trading on the Nasdaq stock market.
On Friday, shareholders approved a merger deal between Donald Trump’s media company and Digital World Acquisition Corp.
Digital World’s share price has fluctuated considerably in recent years. After the merger was approved on Friday, the stock fell 13.7%. In the afternoon of Monday, the stock had risen 22% to $45.40.
A majority of the combined company, approximately 79 million shares, will be owned by former president Donald Trump. By multiplying that figure by Digital World’s closing stock price of $36.94 on Friday, the total value of the stake could reach more than $3 billion.
As long as the company’s board does not amend a “lock-up” provision that prevents company insiders from selling newly issued shares for six months, Trump cannot sell his stake in Palm Beach, Florida-based company immediately.
Former President George H. W. Bush attended a hearing on his criminal hush money case in New York on Monday. In another decision, a New York appeals court reduced his $454 million civil fraud judgment to $175 million if he pays that amount within 10 days.
Founded in February 2022, Truth Social was launched one year after Trump was banned from major social networks, including Facebook and X, formerly Twitter, following an insurrection on Jan. 6.
Since then, Trump has been reinstated to both networks, but has remained loyal to Truth Social. The platform itself has been used to promote Truth Social – on Friday, Trump wrote, “I love Truth Social.”
Truth Social has not disclosed its user numbers, but after the company goes public, more information will be available. Approximately 5 million mobile and web users were active in February, according to research firm Similarweb.
This is still significantly higher than TikTok’s 2 billion and Facebook’s 3 billion users, as well as Parler’s, which has been offline for nearly a year but plans to return, and Gettr’s, which had fewer than 2 million users in February.
Trump Media lost $49 million in the first nine months of last year, earning just $3.4 million in revenue and incurring interest expenses of $37.7 million.
Upon issuance of the common stock, Trump Media & Technology Group’s ticker symbol will be “DJT”.
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