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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

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Trump Anticipates Billions in Stock Market Windfalls as Deal Clears

Donald Trump Faces Hush-Money Case Starting April 15
Trump Anticipates Billions in Stock Market Windfalls as Deal Clears Trump Anticipates Billions in Stock Market Windfalls as Deal Clears
Donald Trump Faces Hush-Money Case Starting April 15
Trump Anticipates Billions in Stock Market Windfalls as Deal Clears Trump Anticipates Billions in Stock Market Windfalls as Deal Clears

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Trump Anticipates Billions in Stock Market Windfalls as Deal Clears

Donald Trump seems to be in search of funds to settle a $464 million (£365 million) fraud fine, and he might just find a solution in the stock market.

Trump Media, the company behind the social media platform Truth Social, is on the verge of going public as a majority of Digital World Acquisition Corp shareholders voted to acquire it on Friday.

With Donald Trump expected to hold a stake of at least 58% in the merged entity, which would be worth nearly $3 billion at Digital World’s current share prices, this could represent a significant windfall for him. Despite various red flags associated with the deal, including unresolved lawsuits and an $18 million settlement related to fraud charges, Trump Media’s potential value still remains high.

Digital World’s shares dropped over 13% on Friday after the acquisition was approved, ending the day at $36.94. However, many individual investors, likely Trump loyalists, appeared undeterred by the decline.

The company, soon to be renamed Trump Media & Technology Group, could start trading on the Nasdaq stock exchange under the ticker DJT as early as next week.

While this deal may not immediately resolve Trump’s financial challenges, such as the New York fraud penalty, as he’s barred from selling or transferring his shares for at least six months, it could offer him alternative solutions. He could seek a loan backed by the value of his shares, though analysts anticipate banks may lend him less than the shares’ paper value due to business risks.

Despite the potential risks for Digital World shareholders, some hope their support will aid Trump, potentially assisting him in his legal battles.

However, analysts caution that the risk of loss for Digital World shareholders remains substantial, as the share price doesn’t necessarily reflect the company’s fundamentals. Despite Trump Media’s modest revenue and user base compared to major social media platforms, the merger could inject over $200 million in cash into the company for growth and expansion.

Nevertheless, the future of Trump Media remains uncertain, and analysts view Digital World as a prime example of a “meme stock” whose share price may eventually decline. Regardless, the merger could represent a significant transfer of value to Trump, primarily based on his name and posts on the platform.

In summary, while the stock market may offer Trump a lifeline in resolving his financial challenges, the success of Trump Media as a publicly traded company remains uncertain, with potential risks for both investors and Trump himself.


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