It’s just being reported that investors have now approved a plan which will take Truth Social public and this would mean a massive windfall for Trump.
Here’s the news from WSJ:
Investors approved a plan to take Donald Trump’s struggling social-media company public, putting him one step closer to a roughly $3 billion windfall that could end a financial squeeze that is weighing on his presidential run.
Truth Social, with few users and little revenue, is expected to start trading on the stock market next week at a staggering $5.5 billion valuation. The valuation is the result of frenzied buying by Trump supporters of shares of the shell company that merged with the former president’s social-media platform.
Trump’s approximately 60% stake is worth roughly $3 billion, depending on how the stock trades.
The stock’s ticker will become DJT, Trump’s initials, when Truth Social starts officially trading as a new public company.
The vote caps off a 2 ½-year saga to take Truth Social public that included charges of insider trading and a fine to settle a Securities and Exchange Commission investigation. It makes the fledgling platform Trump founded after getting kicked off mainstream sites in 2021 perhaps his best investment ever.
The WSJ says it’s unclear if this massive windfall would help Trump in his civil fight against the corrupt New York AG Letitia James:
To sell shares or borrow against them in the next six months, he would need a waiver from the executives in charge of the shell company taking Truth Social public. Although they are supporters of Trump, granting the waiver could prompt other investors to sell their shares and dent the stock price.
There are also potential limits on how much stock he could sell at one time in a three-month period tied to the weekly trading volume or number of shares outstanding.
The waiver would be a boon for Trump, who also trails Joe Biden’s campaign in fundraising entering their rematch in the presidential race. The deal will also give new life to Truth Social, providing it with a badly needed cash infusion it could use to attract more eyeballs and advertisers in a crowded social-media landscape.
Trump needs all this cash considering all of the ridiculous legal bills he has and now, of course, this massive fine he has to pay just to get his case heard on appeal. We’ll see how all of this pans out but he even if he has the money, he shouldn’t have to fork over nearly half a billion just to get a case heard.