Donald Trump’s Truth Social goes public
1 min read

Donald Trump’s Truth Social goes public

Spread the love

Trump’s Truth Social, the brainchild of former President Donald Trump, is poised to become a publicly traded company on Tuesday, March 26, 2024, trading under the ticker symbol “DJT” on the Nasdaq exchange. The move follows a decisive vote by Digital World Acquisition Corp. (DWAC) shareholders last Friday, greenlighting a merger with Trump Media & Technology Group (TMTG), the parent company of Truth Social.

With this merger, TMTG gains access to over $300 million in capital raised by DWAC, a crucial infusion for the media venture, which has been grappling with financial losses. The combined entity is anticipated to debut with a market valuation ranging between $5-6 billion, potentially translating into a significant windfall for Trump, whose 79 million shares could be valued at approximately $3 billion, aiding him in addressing mounting legal expenses.

Despite high expectations, TMTG has encountered financial hurdles since the inception of Truth Social in February 2022, reporting modest revenues of $3.3 million in the initial nine months of 2023 alongside substantial losses. Moreover, the platform’s user base remains relatively modest, estimated at roughly 5 million active users compared to industry titans like.meta and X.

The trajectory of DWAC’s stock has mirrored that of a “meme stock,” driven more by online buzz and speculation surrounding Trump’s political future rather than underlying business fundamentals. Analysts caution that the current valuation appears inflated and detached from the company’s actual financial performance and growth prospects.

Following the merger, Trump and other TMTG insiders face a six-month restriction on selling shares. Nonetheless, sustained popularity could bolster the former president’s net worth, even in the event of a gradual decline in stock prices. As a publicly traded entity, the newly formed company will be subjected to heightened scrutiny, necessitating transparent disclosure of financial particulars and significant developments.