Former US President Donald Trump this week received an additional 36 million Trump Media shares, worth $1.7 billion.
Under the terms of his merger with Digital World Acquisition Corp. last month, Mr. Trump received additional shares if Trump Media’s stock price reached $17.50 or more in the first 20 trading sessions. He achieved that goal on April 23.
A report filed with the US Securities and Exchange Commission (SEC) on April 30 showed that Mr. Trump received an additional 36 million shares of this company. In total, Trump now owns more than 114 million, or nearly 70% of the outstanding shares of Trump Media. With the closing price of $45 on May 1, the value of the shares owned by the former US President is about $5.2 billion.
However, this asset is only "on paper", because the former US President is banned from selling within 6 months from the time the company's shares are traded on the US stock exchange.
Trump Media stock price performance over the past year. Source: CNN
Trump Media merged with Digital World Acquisition Corp. in late March, then began trading on the Nasdaq on March 26, at $70.90. During its first session, the company's shares briefly touched $80, raising the company's valuation to more than $9 billion.
The stock has been on a tear for the past few weeks, rebounding since mid-April. Trump Media’s stock performance has been consistent with warnings from some analysts last month that Wall Street had overvalued the company.
Truth Social’s (Trump-founded social network, part of Trump Media) fundamentals like revenue, profit, and users are all bad. The company lost $58 million on $4.1 million in revenue last year.
Truth Social has nearly 500,000 users, down half from the same period last year. This number is quite small compared to other major social networking platforms in the world , such as X or Facebook...
Ha Thu (according to AP)
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