Digital World Acquisition shareholders today voted in favor of merging with former President Trump’s media startup, setting the stage for Truth Social’s stock market debut, which could deliver a potential $3.5 billion windfall for Trump.
Digital World stock plunged more than 9% after the vote result was disclosed.
Shares in the newly combined company could begin to be publicly traded next week on the Nasdaq under the stock symbol DJT, Trump’s initials. That is the same ticker symbol Trump used for the company that controlled his long-gone casinos in Atlantic City.
The long-delayed deal between the SPAC and Trump Media & Technology Group received regulatory approval from the SEC last month.
It’s been a long time coming. The reverse-merger agreement was first announced on Oct. 20, 2021.
It’s been a bumpy road since then, as the blank-check company has dealt with a number of challenges, including those from its former CEO, investigations by the U.S. Justice Department and the SEC, as well as risks associated with Trump’s legal proceedings.
As a result of a settlement with the SEC, Digital World is on the hook for an $18 million fine when the Trump Media deal closes.
Trump stands to make about $3.5 billion from the transaction, based on the current value of the nearly 79 million shares he would control in the newly merged company. He could also receive tens of millions of additional stock if his media company hits certain financial milestones.
However, the newfound wealth, for now, exists mainly on paper. Trump and other insiders on the deal are subject to a six-month lockup on their stock. As the largest shareholder, Trump also runs the risk of tanking the stock if he tries to dump his holdings post-lockup.
