Donald Trump’s social media company, Truth Social, is set to go public – potentially netting the former US president $3bn.
It means Trump Media & Technology Group (TMTG), whose flagship product is the social networking platform, will soon begin trading on the Nasdaq stock market.
It comes after Digital World Acquisition Corp, a publicly traded shell company, approved a deal to merge with Mr Trump’s media business in a Friday vote.
The deal values his majority stake in the company at about $3.6bn (£2.8bn).
The windfall could prove vital as Mr Trump grapples with the financial fallout of a string of legal cases against him, including a $454m (£356) judgment in a civil fraud case in New York.
Meanwhile, Digital World’s former CEO Patrick Orlando, and former Trump business associates Andy Litinsky and Wes Moss have separately sued to block the merger.
They have argued they were entitled to more shares for their previous work on the deal and it isn’t clear when these cases will be resolved.
Even if the deal gets completed next week, Trump will not be allowed to sell any of his shares in the combined company for six months, or borrow against them, based on terms he previously agreed.
Earlier this week, Trump was fined $454m after being found guilty of scheming for years to deceive banks and insurers by inflating his wealth on financial statements used to secure loans and make deals.
It was this that led to his lawyers saying he couldn’t find the bond money to pause enforcement against him.
Trump, who has secured the Republican nomination for this year’s general election, has frequently claimed to be worth billions of dollars and last year said he had $400m (£317m) in cash, in addition to properties and other investments.
The deal will deliver a much-needed $300m (£238m) cash infusion in to TMTG.
In the first nine months of operations in 2023, the company lost $10.6m (£8.4m), after losing $23.2m (£18.4m) in 2022.
It has been funding itself by borrowing $40.7m (£32.3) through convertible promissory notes that can be paid back in stock.
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(c) Sky News 2024: Donald Trump’s social media company set to go public – potentially netting him $3bn
