Former President Donald Trump is facing a significant financial challenge as he grapples with over $450 million in legal bills. In an effort to raise funds, Trump is looking to liquidate his stock in Digital World Acquisition Corp. (DWAC), a blank check company that is set to merge with Trump Media & Technology Group (TMTG) to take Truth Social public.
However, the situation is complicated by a sharp decline in DWAC’s share price, which plummeted by nearly 14% and closed at around $36.94 per share on Friday. This drop could potentially lower the estimated value of Trump’s majority stake in the newly formed Trump Media.
Additionally, Trump is restricted from selling his shares in TMTG for six months, but there is speculation that the board of directors, including his son Donald Trump Jr., may reconsider this restriction to allow Trump to liquidate shares sooner to cover his legal costs. This potential move, along with the recent stock performance, could further impact the company’s market stability.
Complicating matters further, TMTG’s co-founders, Andy Litinsky and Wes Moss, are suing Trump for diluting the value of their stock shares. TMTG is set to trade under the ticker symbol DJT on the NASDAQ, a nod to Trump’s previous publicly traded venture, Trump Hotels & Casino Resorts.
Financial pressures remain a critical hurdle for Trump as he gears up for the upcoming election campaign. In contrast, President Joe Biden is reportedly set to receive up to $1 billion in pledges from Democratic-leaning groups for his re-election effort.
The price action of DWAC’s stock has been volatile, surging to a 52-week high of $58.72 per share before dropping to $44.20 per share just before the shareholder vote. After-hours trading saw a slight recovery, with the stock reaching $38.55 per share, 12.7% lower than the opening price on Friday.
As Trump navigates these financial challenges and legal battles, the future of his media venture and political aspirations remains uncertain. The outcome of these developments will undoubtedly have far-reaching implications for Trump and his supporters.
