Former President Donald Trump stands to receive up to 36 million additional shares of Trump Media, valued at a staggering $1.17 billion based on Tuesday’s closing price. This windfall is part of an earnout bonus provision outlined in the merger agreement between Trump Media and Digital World Acquisition Corp., as disclosed in an SEC filing. The agreement stipulates that Trump is entitled to these additional shares if certain stock price thresholds are maintained for a specified period.
Despite initial volatility in DJT stock following its debut on the stock market, the price has consistently remained above the required threshold of $17.50 per share for the requisite number of trading days. Notably, the stock closed at $41.54 on April 26, marking a significant increase from its debut price.
Trump Media was founded by Trump in 2021 as a response to his banishment from major social media platforms in the aftermath of the January 6 riots at the U.S. Capitol. The company went public on the Nasdaq on March 26, 2024, through a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC).
While the stock’s debut was met with enthusiasm from Trump’s supporters, regulatory filings revealed significant operating losses for Trump Media in 2023. Despite generating approximately $4 million in revenue, the company reported losses exceeding $58 million, leading to concerns about its long-term viability.
Trump’s legal troubles further complicate the situation, as he faces a criminal trial in Manhattan on 34 counts of falsifying business records. Additionally, he has been ordered to pay a combined $537 million in two civil cases, both of which he is appealing. Amid these challenges, Trump’s potential windfall from Trump Media shares could play a significant role in his financial future.
Despite the uncertainties surrounding Trump Media and Trump’s legal battles, the former president’s involvement in the company continues to attract attention and speculation. As the saga unfolds, the financial markets and legal arenas will closely monitor Trump’s fortunes and the fate of Trump Media.
