Former President Donald Trump will receive a $1.25 billion “earn-out” bonus from his media company after its stock price exceeded a key threshold to qualify for the bounty.
Trump, who owns a majority stake in Trump Media and Technology Group, will receive an additional 36 million shares of the company’s stock on Tuesday.
On Monday, Trump Media stock closed at about $35.50. That’s double the benchmark minimum stock price of $17.50 that the company must meet for Mr. Trump to receive his bonus.
The earn-out requires Trump Media stock to reach a benchmark within a 30-day trading window starting March 25, when it goes public. The 20th is Tuesday.
“Assuming all earn-out shares are issued, President Donald J. Trump will receive 36 million earn-out shares,” the company said in a securities filing. Quoted by CNBC.
Trump Media, the parent company of his social media app Truth Social, has been authorized to issue a total of 40 million earn-out shares as part of its merger with blank check company Digital World Acquisitions Corporation. have.
The filing suggests that some or all of the remaining shares will be issued to Trump media executives as part of an incentive plan.
“With more than $200 million in the bank and zero debt, Trump Media has met all obligations related to the merger and is rapidly moving forward with its business plan,” a Trump Media spokesperson said in a statement to the Post. told.
The Republican candidate for the next presidential election already owns 78.75 million shares of Trump Media.
The earn-out shares will give Trump 65% of the total amount outstanding, according to SEC filings.
Mr. Trump’s stake in Trump Media is valued at $35 per share, making it worth about $4 billion on paper.
But a six-month lockout provision prevents them from accessing that money to pay some of the expensive legal costs. The company’s board, which is controlled by Mr. Trump, could waive the provision, but that decision carries the risk of a sale by other investors.
President Trump appeared in a Manhattan courtroom on Monday for opening arguments in his hush money trial.
He was also awarded a $454.2 million judgment by a New York state judge after Attorney General Letitia James successfully sued the former president’s company for allegedly inflating its assets.
Trump spent nearly $5 million on lawyers last month, but only $6.8 million remains in the account he used to pay them, according to campaign finance documents. According to Bloomberg News.
Trump Media began trading at nearly $80 per share on the Nasdaq on March 26 under the ticker “DJT,” briefly giving the company a market capitalization of more than $9 billion.
The stock has fallen nearly 70% since hitting a record high last month.
