Donald Trump Potentially Poised to Gain $3 Billion from Truth Social's Public Listing

Investors in Digital World Acquisition Corp (DWAC), a special purpose acquisition company (SPAC), are preparing for a crucial vote on Friday that could pave the way for former President Donald Trump's social media venture, Trump Media & Technology Group, to go public. The success of this merger would lead to the launch of the social media platform Truth Social into the public markets.

Financial Windfall for Trump

Should the shareholders approve this deal, Trump stands to greatly benefit financially. He is set to hold a significant share in the newly public entity, a stake that could be valued at a staggering $3 billion. This figure stems from the impressive performance of DWAC's stock, which has seen a significant surge in value, jumping by more than 100% this year, including a 4% increase recently.

However, Trump would face a restriction on cashing in immediately, as the terms of the deal include a six-month lock-up period preventing him from selling his shares right after the company goes public.

Legal Challenges and Shareholder Vote

The impending shareholder vote is set against a backdrop of legal challenges. DWAC itself has initiated legal action against ARC Global, its largest investor, to mandate its affirmative vote on the merger. Additionally, the ex-President's media group has been the target of a lawsuit from United Atlantic Ventures co-founders, accusing Trump Media of attempting to undermine their partnership stake.

Moreover, the outcomes of the shareholder vote carry further weight considering Trump's current endeavor to defer a $454 million civil fraud penalty during his appeal process. He argued the financial burden of settling the penalty before an appeal concludes would be prohibitive and risks losing assets permanently, in statements made on the Truth Social platform.

Market Analyst Perspective

An analyst at SA's Giesbers Investment Strategy suggested that there may be opportunities for traders to profit from DWAC in the short term. Nonetheless, the analyst also cautioned about the potential of heightened volatility in the future.

Trump, DWAC, SPAC