January 1, Trump’s Truth Social Merger – A Billion Dollar Game?

Digital World Acquisition Corp. (DWAC) shareholders have approved a merger with former President Trump’s social media platform, Truth Social. This approval sets the stage for the social media site to go public, potentially netting Trump an estimated $3.5 billion.

The Securities and Exchange Commission (SEC) last month gave its nod for the highly anticipated merger between Trump Media & Technology Group and the special purpose acquisition company.

Trump, who owns nearly 79 million shares in the merged entity, could make a significant profit from this deal, estimated at around $3.5 billion.

“The stock has fluctuated in value throughout Friday after opening at roughly $44 per share, rising as high as $46.70 and falling as low as $38.12 before settling near $41 shortly before noon,” a report stated.

This potential windfall comes as Trump faces challenges in securing a $464 million bond in his civil fraud lawsuit in New York. Earlier this week, Trump’s legal team admitted that it was “impossible” to secure the entire appeal bond.

If Trump fails to secure the $500 million bond by Monday, he may face asset seizures. The New York attorney general’s office has already begun the initial steps towards seizing Trump’s Seven Springs golf facility and private estate in Westchester County.

To reclaim these assets, the first step is to enter a judgment in the counties where Trump owns properties.

A judgment has already been passed in New York City, where Trump’s famous 40 Wall Street and Trump Tower properties are located, and where his civil fraud trial is being held.

However, critics of the former president point out that a clause preventing insiders from selling new shares for six months could hinder Trump’s quick access to the funds.

Last year, two individuals, including a former DWAC board member, were accused of insider trading after allegedly making a $22 million profit from buying company stock before the merger announcement. In July, the SEC fined the company $18 million for allegedly misleading the agency and investors about negotiations that DWAC’s future CEO and board chair had with TMTG before going public.

DWAC has acknowledged its previous encounters with the SEC as a potential risk in its regulatory filings prior to Friday’s shareholder vote.

The company has advised Trump that his interests might not always align with those of other shareholders. As he will own approximately 60% of the shares in the new company, he will have the authority to decide on matters put to the shareholders for approval.

The merger has also been met with legal challenges from former business executives, including TMTG co-founders Andy Litinsky and Wes Moss, and former DWAC chair and CEO Patrick Orlando.

Orlando is suing DWAC for a larger payout from the merger, while Litinsky and Moss accuse TMTG of trying to dilute their ownership stake in the company. Earlier this week, DWAC filed a lawsuit against its former chairman to force him to back the agreement.

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