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The deal could help Trump quench his financial thirst.

VnExpressVnExpress28/03/2024


The former president has extra money to cover legal costs when the social network goes public.

Shareholders of Digital World Acquisitions Corporation (DWAC), a mergers and acquisitions firm, last weekend completed a merger agreement with Trump Media and Technology Group (TMTG), the parent company of the social network Truth Social founded by former US President Donald Trump.

Merger talks began in 2021 when Mr Trump launched Truth Social to "challenge left-wing media conglomerates".

DWAC is already listed on the Nasdaq stock exchange. With the merger agreement, Truth Social will also be listed and traded on Nasdaq as early as next week under the ticker DJT. Mr. Trump controls 58.1% of the company’s common stock.

According to US media, Mr. Trump's total assets at Truth Social are estimated to exceed $3.5 billion in transaction value thanks to the merger.

However, some argue that this figure far exceeds Truth Social's actual value, especially when Mr. Trump's social network continuously reports losses and its user base cannot be compared to industry giants such as Facebook, TikTok or X.

Former US President Donald Trump speaks in Rome, Georgia on March 9. Photo: AFP

Former US President Donald Trump speaks in Rome, Georgia on March 9. Photo: AFP

The deal was announced as Mr Trump faces a $464 million bail in a New York fraud case. Mr Trump has complained about not being able to find a financial partner willing to underwrite such a large sum.

The financial burden was eased after a New York appeals court agreed to reduce the $464 million bail to $175 million and give Mr. Trump 10 more days to pay it.

Observers say the merger between TMTG and DWAC could pave the way for Mr. Trump to sell new shares, raising enough cash to post bail and appeal. This option would save Mr. Trump from having to sell off real estate and losing the ability to recover assets after the lawsuit.

The Truth Social deal includes provisions that would prevent the majority shareholders from selling their shares for at least the first six months after the merger. However, Mr. Trump could pledge his shares to seek new loans or seek early exit privileges from TMTG’s board, which includes many of his confidants, including former congressman Devin Nunes, former U.S. trade representative Robert Lighthizer and his eldest son, Donald Trump Jr.

Thanh Danh (According to CNBC, AP, Hill )



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