The Trump Media & Technology Group announced on Monday that its merger with Digital World Acquisition Corp. has been completed, and trading under the ticker symbol “DJT” on the Nasdaq Stock Market will begin on Tuesday. This merger represents a multi-billion dollar windfall for former President Donald Trump, who serves as the chairman and dominant shareholder of the new company. Despite the closing of the merger, there are lock-up restrictions that may prevent Trump from selling or borrowing against his stake in the company for several months.
The CEO of the combined company, Devin Nunes, stated that their goal is to “reclaim the Internet from Big Tech censors” and provide a safe harbor for free expression. Shares of Digital World Acquisition Corp surged more than 20% on Monday, and the stock has seen a significant increase of over 170% in the past six months. However, experts are cautioning that the market may be overvaluing Trump Media considering the company’s financial fundamentals. Trump Media reported only $3.4 million in revenue and a net loss of $49 million in the first nine months of last year, and Truth Social’s user base is shrinking compared to other social media platforms.
Leading up to the merger, the trading of DWAC shares had sparked a frenzy similar to the surges seen in meme stocks like AMC Entertainment and GameStop. Truth Social, a new social media platform owned by Trump Media, has gained popularity among shareholders with over 8,000 members in a chat group discussing the shareholder vote and posting memes. Despite the enthusiasm surrounding the merger, concerns remain about the financial sustainability of Trump Media and the declining user base of Truth Social compared to other social media platforms like Twitter.
The completion of the merger has led to an increase in Digital World Acquisition Corp’s stock prices, with shares rising 39% on Monday to around $51. Trump’s stake in the company is currently valued at approximately $4 billion, but trading restrictions may limit his ability to capitalize on this windfall in the near future. As the new company begins trading on the stock market, there is optimism among supporters that it will provide a platform for free expression and challenge the dominance of Big Tech censors in the online space. However, concerns about the company’s financial performance and user base continue to linger despite the initial excitement surrounding the merger.
In conclusion, the merger between Trump Media & Technology Group and Digital World Acquisition Corp has been completed, resulting in a significant financial gain for former President Trump. The new company, trading under the symbol “DJT,” aims to challenge Big Tech censorship and provide a platform for free expression. Despite the enthusiasm among shareholders and the surge in stock prices, experts warn that the market may be overvaluing Trump Media based on its financial fundamentals. As Truth Social faces a shrinking user base compared to other social media platforms, the long-term success of Trump Media remains uncertain.
