Donald Trump’s media company, Trump Media and Technology Group, is set to make its debut on the stock market Tuesday, potentially bringing in billions for the former president. However, there are several hurdles Trump must overcome before he can cash out on his stake and address his financial issues.
The company’s market debut comes after shareholders in Digital World Acquisition Corp. (DWAC) agreed to merge into Trump Media, which will trade on the Nasdaq exchange under the stock symbol DJT. This is not the first time a Trump company has gone public, as his hotel and casino resort company traded in 1995 under the same ticker before filing for bankruptcy in 2004.
While Trump’s stake in Trump Media could be worth over $3 billion, he is unable to sell his shares for six months due to a lockup agreement. The company’s board of directors, which includes his son Donald Trump Jr., could vote to allow him to sell earlier, but this could open them up to legal challenges from shareholders.
Trump may also explore using his shares as collateral for a loan to cover his mounting legal bills, including a hefty appeal bond in a civil fraud case in New York. However, there may be legal challenges to this approach due to restrictions in the lockup agreement.
Overall, Trump’s foray into the stock market with Trump Media and Technology Group is generating significant buzz, but the former president still faces a number of uncertainties and challenges as he navigates this new chapter in his business ventures.
