Truth Social merger approved, giving Trump potential source of cash
Shareholders of Digital World Acquisition Corp. (DWAC) approved a merger with former President Trump’s media startup on Friday, teeing up Truth Social’s stock market debut and a potential $3.5 billion windfall for Trump.
The long-delayed merger between the blank check company and Trump Media & Technology Group received regulatory approval from the Securities and Exchange Commission (SEC) last month.
Trump stands to make about $3.5 billion from the deal, given the nearly 79 million shares he would control in the newly merged company.
The potential windfall comes as the former president struggles to secure a $464 million bond in his New York civil fraud case. Trump’s lawyers admitted earlier this week that it was “impossible” to secure the full appeal bond, due to a lack of cash on hand.
If Trump cannot secure the half billion-dollar bond by Monday, he could risk the seizure of his assets. The New York attorney general’s office has taken a first step toward seizing Trump’s golf resort and private estate known as Seven Springs, after filing judgments in Westchester County.
Entering a judgment in the counties where Trump owns properties is the first step toward attempting to recover them.
A judgement has already been entered in New York City, where Trump’s civil fraud trial took place and where the former president’s famous 40 Wall Street and Trump Tower properties are located.
Despite the potential windfall coming his way, Trump won’t be able to immediately access the money, due to a provision that prevents insiders from selling new shares for six months.
The Associated Press contributed.