Trump might make billions from Truth Social just as it needs the cash the most
Chip Somodevilla; Jakub Porzycki/NurPhoto via Getty Images
- Donald Trump could reap billions from his large stake in Truth Social.
- Trump created his social media platform after he was booted from mainstream ones following Jan. 6.
- Truth Social's parent company could complete its merger with an SPAC as soon as Friday.
Former President Donald Trump could reap billions from his social media platform just as he struggles to find the cash needed to convince a company to pay for a $456 million appeal bond for New York state civil fraud verdict.
On Friday, shareholders are scheduled to vote on a long-delayed merger to bring Truth Social's parent company public. Trump's stake, according to the Wall Street Journal, would be worth roughly $3.5 billion. The former president's potential windfall will almost certainly not be immediate.
Under current agreements, Trump can't sell his shares until at least six months after the completion of the merger. The former president needs cash now, though. As Business Insider previously reported, his lawyers recently told a New York court that Trump can't afford to buy an appeal bond to cover him and his co-defendants. Trump faces a March 25 deadline to obtain the bond or default on the judgment.
There's also an ongoing legal battle that could further complicate the merger.
Shareholders within Truth's parent company, Trump Media & Technology Group, and Digital World Acquisition, the Special Purpose Acquisition Company (SPAC) the shell company it is merging with, have filed dueling lawsuits leading up to the vote.
Digital World Acquisition filed one of those suits against one of its largest investors, Arc Global Investments II, accusing the company of withholding votes necessary to approve the deal. Patrick Orlando, Digital World Acquisition's former chairman and CEO, manages Arc Global Investments II.
Trump Media & Technology Group, Digital World Acquisition, and Orlando did not immediately respond to Business Insider's requests for comment.
If the deal is approved, the new company will receive the updated symbol DJT, the former president's initials, for trading — a change the Journal says could come as soon as Monday.
Trump struck out for a new social media venture in the wake of getting kicked off of Twitter, Facebook, and YouTube following the January 6, 2021, Capitol riots. In February 2022, Trump and his advisors launched Truth Social. All three platforms have since restored Trump's access, but the former president lavishes far more of his attention on Truth. Trump's platform recently promoted the former president's decision to use it exclusively to post his real-time reactions to President Joe Biden's State of the Union address.