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CNN
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Trump Media & Technology Group, owner of Truth Social, has entered into a deal to go public, giving former President Donald Trump a huge windfall that doubles his net worth.
Trump joined the Bloomberg Billionaires Index’s list of the world’s 500 richest people for the first time after Trump Media announced his stock market debut on Tuesday.
Bloomberg estimated that Trump’s net worth soared by $4 billion on Monday alone, taking his fortune to $6.5 billion.
The completion of the merger between Trump Media and Digital World Acquisition Corp. is a multibillion-dollar windfall for Trump, who is the new company’s chairman and controlling shareholder.
Digital World’s stock price rose 21% on news of the merger completion. The buying continued on Monday afternoon, with Digital World rising 39% on the day to around $51. At current prices, Trump’s stock is worth about $4 billion. But lock-up restrictions likely prevent Trump from selling or even borrowing against the value of the stock for months.
The companies said the new company will begin trading on the Nasdaq stock market under the ticker symbol “DJT” on Tuesday.
Devin Nunes, CEO of the combined company, said in a statement that the business will work to “take back the internet from the censorship of big tech companies.”
“We continue to deliver on our promise to the American people to serve as a safe harbor for free expression and stand up to the growing army of suppressors of speech,” Nunes said.
Shares of Digital World Acquisition Corp. (DWAC), the shell company that currently owns Truth Social, soared more than 20% on Monday. The stock price has increased more than 170% in the past six months.
Experts warn that the market is overvaluing Trump Media given the company’s fundamentals.
Trump Media earned just $3.4 million in the first nine months of last year, according to SEC filings. The company posted a net loss of $49 million in that period.
Meanwhile, Truth Social’s user base is shrinking, even smaller than that of X, formerly known as Twitter.
Truth Social’s U.S. monthly active users on iOS and Android are down 39% year-over-year, according to data from Similarweb shared with CNN earlier this month.
Trading in DWAC stock in anticipation of its merger with Trump Media embodies the same kind of enthusiasm seen in Tupperware’s stock price surge last July and meme stocks AMC Entertainment and GameStop at the height of the pandemic. was. On Truth Social, he has over 8,000 members in a chat group titled “DWAC Shareholder Group” where users discuss shareholder votes. Approve the merger and post memes and messages of support.
Contributors: CNN’s Elisabeth Buchwald and Krystal Hur.
This story has been updated with additional context.
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