Former President Donald J. Trump’s social media company, Trump Media & Technology Group, is valued at over $6 billion. The agreement that led to its stock market debut almost didn’t happen due to doubts from Trump himself. Co-founder Andy Litinsky testified in a federal court that Trump was uncertain about merging the company with Digital World Acquisition Corp. before a deal-signing ceremony at Mar-a-Lago in 2021. Litinsky described Trump as the ultimate decision maker, indicating Trump’s key role in the company’s decisions.
Trump Media’s stock has soared since going public, making Trump’s stake in the company worth about $5.4 billion. However, Trump is unable to sell or use the shares as collateral until at least mid-September. Litinsky’s comments about Trump’s hesitation in finalizing the deal came during his testimony in an insider trading trial involving traders who made millions from timely stock purchases before the merger announcement. Litinsky was subpoenaed to testify at the trial, highlighting the legal entanglements surrounding the company’s formation and subsequent stock performance.
The insider trading trial involved former Digital World board member Bruce Garelick, charged with tipping off others about the merger announcement. Garelick’s attorney claimed his client did nothing wrong and suggested the illegal tip could have come from someone else. Litinsky mentioned following company rules to maintain secrecy about the merger talks, emphasizing the need for confidentiality during negotiations. Litinsky testified that he had never met Garelick personally, indicating potential disconnect between key figures involved in the trial.
Litinsky’s past involvement with Trump on “The Apprentice” and Trump’s television production company led to the founding of Trump Media with Wes Moss. Litinsky and Moss are currently suing both Trump Media and Trump himself, alleging that they are being deprived of their rightful stake in the company, which is now valued at over $500 million. Litinsky’s testimony in the insider trading trial sheds light on the inner workings of the company and the legal challenges that have arisen since its inception. The timing of the trial coinciding with Trump’s separate criminal trial adds further complexity to the situation.
Mr. Litinsky recalled Trump’s uncertainty about finalizing the merger agreement during a pivotal moment before the stock market debut. Trump’s central role in the decision-making process highlights his influence over the company’s direction. The legal challenges facing Trump Media and the insider trading trial reveal the complexities and controversies surrounding the company’s formation and subsequent success in the stock market. Litinsky and Moss’s lawsuit against Trump Media and Trump himself adds another layer of complexity to the situation, raising questions about ownership rights and stake distribution within the company.
