Former President Donald Trump is poised to benefit financially from his stake in Truth Social, a social media platform he helped create after being banned from mainstream platforms following the Capitol riot on January 6, 2021. A blank-check company, formed specifically to acquire Trump Media & Technology Group, the parent company of Truth Social, recently approved a merger that will result in the platform becoming part of a publicly traded company.
The approval of the merger is expected to increase Trump's net worth by over $3 billion. However, there are some restrictions in place that prevent Trump from selling his shares for at least six months, unless the company's board waives a previous lockup agreement. Additionally, there are ongoing lawsuits between shareholders that could potentially complicate the company's future.
The board of the new company is expected to be comprised of Trump's allies, including former congressman Devin Nunes, who is set to become the CEO of the combined companies, and Donald Trump Jr., who plans to be on the board. Former Trump Cabinet officials Robert Lighthizer and Linda McMahon are also expected to join the board. The new company could potentially be relisted on the Nasdaq as soon as Monday under the symbol DJT, representing the former president's initials.
This financial windfall comes at a crucial time for Trump, as he faces mounting legal fees and the need to post an appeal bond covering a civil fraud judgment issued by New York state. Despite the potential financial gains for Trump, the future of Truth Social as a publicly traded company remains uncertain due to various legal and financial challenges.