Former president Donald Trump is poised to make his mark on Wall Street with the debut of his Truth Social network, potentially earning him billions of dollars on paper. However, the longer-term outlook for the business remains uncertain as Trump’s company expects to continue losing money.
Shareholders of Digital World Acquisition Corp. are set to vote on a merger with Trump Media & Technology Group on Friday. Digital World, a special purpose acquisition company (SPAC), aims to merge with TMTG to quickly list its stock on the Nasdaq. If the merger is approved, Trump will own the majority of the new company.
Despite the potential financial gains, Trump faces challenges such as a $454 million judgment in a fraud lawsuit and lock-up provisions that may prevent him from selling his stock for at least six months. The excitement surrounding Trump has caused Digital World’s stock to soar, raising concerns about the stock’s true value.
The new company’s board will include individuals nominated by TMTG, including Trump’s son, Donald Trump Jr., as a director. Regulatory filings indicate risks such as the high failure rate for new social media platforms and ongoing operational losses.
Experts have raised doubts about whether the current stock price is justified, drawing parallels to the meme stock phenomenon witnessed with AMC and GameStop. As Trump prepares to enter the social media arena, the financial landscape remains uncertain for both him and his investors. Stay tuned to Insider Wales Sport for updates on this developing story.
