Truth Social CEO and former congressman Devin Nunes denied speculation that former President Donald Trump would no longer be an exclusive member of the platform.
Former President Trump will find out Friday whether his social media platform, Truth Social, will be given the green light to trade on the Nasdaq stock market.
The vote will be on whether Trump’s media company, Trump Media & Technology Group, which runs his site TruthSocial, can be merged with publicly traded shell company Digital World Acquisition Corp. .
If the deal is approved, Trump Media & Technology Group could soon start trading on the stock market instead of the digital world, potentially netting the former president billions of dollars in profits.
President Trump launched his social media platform in February 2022, a year after he was banned from platforms such as X, Facebook and Instagram in the wake of the riot at the U.S. Capitol. After these bans were lifted, he slowly returned to using them, but only used X once, posting a police mug shot after he was arrested on extortion and related charges. is.
Trump’s Truth Social Media Trading Clears Millions of Dollars’ Worth of Securities Trading Hurdles
Former President Trump’s Truth Social is expected to be approved to enter the stock market later today, potentially netting the former president billions of dollars in profits. (James Devaney/GC Images | App Store)
Most of his social media activity over the past two years has been on Truth Social.
“True Social is my voice, the real voice of America!!! MAGA2024!!!,” Trump posted from the stage Thursday ahead of the vote.
If the merger goes through, Trump would own more than 78 million shares.
Multiply that by Digital World’s current stock price of $42, and Trump’s total stake could exceed $3 billion, the Associated Press reports.
This photo illustration taken on February 21, 2022 displays the Truth social network logo. (Reuters/Dado Ruvic/Illustration/Reuters Photo)
President Trump’s social media apps face financial consequences
Mr. Trump will own 69% of the company, up from 58%, and other investors could earn tens of millions more shares for each provision known as an “earnout,” which is tied to stock price performance. There is sex. According to the submitted documentsThe Washington Post first reported.
The merger could face resistance from Trump Media co-founders Andy Litinsky and Wes Moss, whose investment firm United Atlantic Ventures has threatened to block the move. .
According to the filing, the company sent a letter to Digital World asserting that its original agreement with Trump starting in 2021 is still in effect, appointing two directors to its board of directors and giving it $1 million. He claimed that he had given him the right to receive recourse.
Digital World also revealed that former CEO Patrick Orlando may put his contract on hold because he wants to receive additional compensation, Reuters reported.
Truth Social has struggled since its launch. Loss of $31.6 million since launch According to the filing reported by Reuters, the deal will run from early 2022 to mid-2023.
In 2022, Truth Social reported profits of $50.5 million and net sales of $1.4 million. Net sales for the first half of 2023 were $2.3 million, with a loss of $23 million.
Elon Musk voted to restore former President Trump to X. (Reuters/Gonzalo Fuentes/Reuters Photo)
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President Trump’s Truth Social has 6.7 million followers, while X has more than 87.4 million followers.
The Associated Press, citing research firm SimilarWeb, estimated that Truth Social had about 5 million active mobile and web users as of February. Trump Media did not disclose the number of users. Facebook has 3 billion active users, TikTok has more than 2 billion, and Gettr had less than 2 million visitors in February, the magazine reported.
According to searchlogistics.com, X has 528.3 million monetizable monthly active users.
