Former US President Donald Trump’s media firm, Trump Media & Technology Group (TMTG), made a splash on the stock market with its debut in New York. The company, which is the platform for his social media venture Truth Social, saw its shares surge by 40% on the Nasdaq, pushing its valuation over $9.25 billion.
Analysts noted that the majority of investors were Trump supporters, making it the most trending stock on US exchanges. The company’s ticker symbol, DJT, bears Mr. Trump’s initials, adding a personal touch to the listing.
The listing was made possible through a merger with a publicly-listed shell company, Digital World Acquisition Corp, after two years of negotiations. This allowed TMTG to bypass the traditional Initial Public Offering route by using a special purpose acquisition firm (SPAC).
Despite facing legal challenges and fundraising hurdles for a potential White House bid, Mr. Trump’s stake in TMTG is worth over $5 billion on paper. The share sale is expected to provide $300 million to Truth Social, which claims to have millions of users.
Market experts have raised concerns about the valuation of the business relative to its financial performance, but acknowledge the enthusiasm of Trump supporters driving the stock price. Lock-up restrictions prevent Mr. Trump from accessing his shares for at least six months, but there is speculation that the board may grant him a waiver.
The successful stock market debut of TMTG highlights the demand for alternative social media platforms that offer free speech and reject censorship imposed by Big Tech companies. As Mr. Trump navigates legal challenges and political ambitions, the future of his media venture remains a topic of interest for investors and supporters alike.
