Former US President Donald Trump may add $3 billion to his net worth if this merger falls through.
US Republican candidate Donald Trump could potentially increase his net worth by $3 billion if the parent company of his Truth social media goes public next week. Truth Social is owned by the Trump Media & Technology Group, which announced a merger with Digital World Acquisition Corp. in 2021.
A series of civil lawsuits hitting the Trump Media & Technology Group prevented the merger from falling through until now. DWAC’s board of directors will convene on Friday at 10 am Eastern Time to vote on the merger. DWAC is publicly listed and its stock trades at $46.30, up 8.14% in intraday trading.
DWAC sued former CEO Patrick Orlando to force him to vote for the merger. Orlando is reportedly against the move and could weigh his 14.77% share to prevent it. He said he would personally attend the meeting.
However, most observers widely expect the merger to fall through. If that happens, Truth Social will go public as early as next week.
Donald Trump founded Truth Social in 2021 after his social media accounts on Twitter (now X) and Facebook were banned. The latter decision came after Trump allegedly used his social media accounts to endorse the assault on Capitol Hill on January 6th, 2021.
The deal will grant Donald Trump 80 million DWAC shares. At the current price, it would increase Trump’s net worth by over $3 billion. However, he can start selling shares only 6 months after the merger.
Liquidity problems
The merger would come at a reportedly difficult time for Trump’s wallet. The former billionaire was targeted by several civil lawsuits, including a $454 million New York sentence.
As a Republican candidate for the 2024 elections, Trump also needs to invest millions of dollars in campaign events. Incumbent president and Democratic candidate Joe Biden is reportedly sitting on a much larger war chest for the electoral campaign.
Donald Trump often rebuked these allegations, saying he currently holds $500 million in his bank account. In any case, the merger of Truth Social would significantly increase his financial capabilities.
DWAC board could vote to allow Trump to sell his shares before the six-month deadline. The board is currently filled with Republican allies, including his son Donald Trump Jr.
Other than the civil fines, Trump also faces 91 penal charges in 4 different trials. These include the withholding of confidential documents after the end of his presidential tenure, the endorsement of January 6th’s assault, and the attempted embezzlement of the 2020 presidential elections.
