Trump Scores Lucrative Media Merger Amid Massive Money Woes
Truth Social, Donald Trump’s money-hemorrhaging Twitter knockoff, is going public, a move expected to serve as a necessary lifeline to the struggling business while infusing the former president’s personal coffers with billions in desperately needed funds.
On Friday, shareholders of Digital World Acquisition Corporation, a SPAC, or, so-called blank-check company, approved a merger with Trump Media & Technology Group, which has blown through much of its available cash after earning just $1.07 million in revenue during the third quarter of 2023. According to SEC filings, Trump Media generated a paltry $3.38 million in revenue over the first nine months of 2023, booking a $49 million net loss during the same period.
DWAC’s stock was trading at $44 a share prior to the merger announcement, meaning Trump Media, which will begin trading as early as next week under the ticker DJT, could launch with a market cap exceeding $5 billion. Yet, following the announcement, DWAC shares quickly plummeted, with sellers vastly outnumbering buyers, which pared its valuation nearly 10 percent by 11 a.m.