Shareholders approved a merger Friday to take Donald Trump’s social media venture public, providing a potential financial lifeline for the former president as he faces potential foreclosure.
After several previous delays, investors have voted in favor of a merger between Digital World Acquisition and Trump Media & Technology Group – owner of the Truth Social platform, company officials said in a webcast of the vote.
The action gives Trump potentially about $3 billion as he faces a $454 million settlement in a New York state fraud case, though he may not be able to access the funds for several months.
Truth Social was started by the former president and current presidential candidate after being launched by Facebook and Twitter.
Trump’s expected payoff comes from millions of shares he owns in Trump Media that are now worth billions with Friday’s vote to combine with Digital World, a shell company created specifically to combine with an operating business.
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However, such deals require major shareholders, such as Trump, to hold the equity for six months before the sale.
Trump rage
Shares in Digital World — which is expected to be renamed after Trump — were down 11.5 percent by 15:00 GMT.
Trump, who has won the Republican nomination for this year’s presidential election, is appealing his $355 million fine, plus interest, after a New York court ruled that he, his sons and the Trump Organization said lied for years about the value of his assets. defrauding banks and insurers.
Trump attacked prosecutors earlier Friday, portraying the New York case as a political conspiracy orchestrated by President Joe Biden, his expected opponent again in November.
“No trial, no jury, no crime, no victim,” Trump wrote on Truth Social. “Just a crooked judge and a corrupt Trump-hating attorney general who takes her orders directly from the White House.
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“Interference in elections at a level never seen before!”
Despite the real estate mogul’s estimated net worth of $2.6 billion — and his own claims that he has cash on hand — his lawyers say it was impossible to come up with the $454 million bond, which expires Monday.
Typically, such bonds would be underwritten by an insurer or specialist bond company.
But Trump’s lawyers say that after approaching 30 such companies, none will take the former president’s properties as collateral.
Source: AFP