This photo illustration shows former President Donald Trump next to a mobile phone screen displaying the Truth Social app on February 21, 2022 in Washington, DC.
Stephanie Reynolds | AFP | Getty Images
Shareholders in Digital World Acquisition Company Friday voted to approve a merger with Donald Trump’s social media company, a deal that could ultimately provide the former president with a windfall of $3 billion or more.
The DWAC shareholder vote comes after the so-called special purpose acquisition company announced plans to own truth society Application platform.
Meanwhile, Trump also faces the possibility that New York Attorney General Letitia James will begin trying to recover a $454 million civil fraud judgment against him on Monday.
Shares of the newly merged company, Trump Media, may begin trading publicly next week under the ticker symbol DJT, after Trump’s initials.
Trump’s long-defunct casino and hotel company also trades under the ticker.
Several recent lawsuits filed over the terms of the merger have not affected the voting schedule.
Trump will own nearly 80 million shares in the combined company.
At DWAC’s current trading price, that would be worth about $3 billion or more, although it’s unclear what the combined company’s opening share price will be.
Trump’s potential windfall, while huge, cannot be realized immediately, at least under the current terms of the deal. Trump will be banned from selling stock in the combined company for at least six months.
It’s possible the board could vote to allow Trump to sell shares before then. The board is likely to be made up of people close to Trump, including his son Donald Trump Jr., former wrestling executive Linda McMahon and Trump’s former trade representative Robert Lighthizer, according to the planned list of nominees. .
If the board approves lifting the stock lockup, it could quickly free up a massive source of cash for Trump, this year’s Republican presidential candidate.
Trump is currently facing huge legal battles from attorneys in both criminal and civil cases, and is facing damages judgments of up to half a billion dollars in three separate civil cases.
Trump earlier this week asked a New York appeals court to stay the execution of a $454 million fraud verdict as he seeks to overturn the verdict in the case. The court has yet to rule on his request.
Trump’s attorneys said in a court filing that he did not have enough cash as collateral to provide bonds to bond companies that would secure the judgment and block James’ pursuit of the debt.
But in a “Truth Social” post on Friday, Trump claimed that “I currently have nearly half a billion dollars in cash.”
This is developing news. Please check back for updates.
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