Former President Donald Trump’s social media start-up, Trump Media & Technology Group, is set to begin trading on the stock market on Tuesday, marking a significant milestone for the company and potentially earning Trump a multibillion-dollar fortune.
The newly merged company, which includes the social network Truth Social, will trade on the Nasdaq exchange under the ticker symbol DJT, representing Trump’s initials. The merger with Digital World Acquisition, the company’s partner, saw its share price surge more than 35 percent on Monday, following shareholder approval of the deal announced in 2021.
With Trump owning 60 percent of Trump Media, equivalent to around 78 million shares, his stake is valued at over $3.9 billion at Monday’s closing price. This surge in value propelled Trump into Bloomberg’s list of the 500 richest people, marking a significant increase in his net worth.
Despite the company’s impressive valuation, its business performance tells a different story. Trump Media reported revenue of $3.4 million and a loss of $49 million in the first nine months of 2023, as per Securities and Exchange Commission filings. In comparison, other social media platforms like Reddit and Meta have significantly higher revenue and user numbers.
Trump Media’s chief executive, Devin Nunes, a former Republican congressman, expressed the company’s mission to challenge Big Tech censorship and combat speech suppression online. The merger will provide Trump Media with over $300 million raised from investors in 2021 to expand its online infrastructure and support revenue generation through ads on Truth Social.
Despite its smaller user base compared to other social media platforms, Truth Social aims to focus on business growth rather than traditional key performance indicators. Trump’s stake in the company has significantly increased in value since last April, when he estimated it to be worth between $5 million and $25 million.
The company’s future remains uncertain, with legal challenges from former partners and restrictions on Trump’s ability to sell his shares for six months. Financial experts warn that allowing Trump to cash out early could impact the company’s share price. Nonetheless, Trump’s social media venture continues to attract attention and speculation as it enters the next phase of its journey in the public market.
