Trump could have a hefty payout in six months (Picture: Reuters)
Former US President Donald Trump could be set to make billions as his media company goes public on the stock market.
Publicly traded company Digital World Acquisition Corp is set to merge with Mr Trump’s media business, Trump Media & Technology group.
His media group operates his social networking site, Truth Social, which will now begin trading on the the Nasdaq stock market.
And Mr Trump’s return to Wall Street could come at the right time, as he would own more than £2.35 billion in stocks of his company when it goes on the market.
Last year, Mr Trump said under oath that he was sitting on more than £317 million in cash.
But recent court cases add up to at least £347 million that Mr Trump has been ordered to pay, meaning he could lose all his cash and potentially need to sell his properties or assets for the difference, the New York Times previously reported.
Truth Social – a social media platform – operates under Trump Media & Technology group (Picture: AP)
Mr Trump has been facing mounting legal fees (Picture: AFP)
Even as Trump Media & Technology group enters the stock market, Mr Trump will not be able to cash out the windfall immediately due to a ‘lock up’ provision that prevents company insiders from selling newly issued shares for six months.
His earlier foray into the stock market did not end well. Trump Hotels and Casino Resorts went public in 1995 under the symbol DJT – the same symbol Trump Media will trade under.
By 2004, Mr Trump’s casino company had filed for bankruptcy protection and was delisted from the New York Stock Exchange.
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Ahead of the merger’s approval, Digital World’s regulatory filings listed many of the risks its investors face, as well as those of the Truth Social owner once Trump Media also goes public.
One risk, the company said, is that Mr Trump would be entitled to vote in his own interest as a controlling stockholder – which may not always be in the interests of all shareholders.
Digital World also cited the high rate of failure for new social media platforms, as well as Trump Media’s expectation that it would lose money on its operations ‘for the foreseeable future’.
Trump Media lost £38.4 million in the first nine months of last year, when it brought in just £2.67 million in revenue and had to pay £29.6 million in interest expenses.
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