On Monday CNN shed light on what could be a major financial boon for former President Donald Trump. Despite ongoing efforts to undermine his business ventures, Trump’s association with the social media platform, Truth Social, could see his financial assets soar to unprecedented heights.
Truth Social, a venture that Trump has been closely linked with, has been under scrutiny and faced its share of challenges. However, recent analysis suggests a bright financial future. Initially valued at around $700 million in 2022 and experiencing a dip to less than $100 million, the platform now stands on the verge of potentially going public.
Should this happen, the value of Trump’s shares in Truth Social could skyrocket to an astonishing $4 billion.
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It’s noteworthy that Trump would not be able to liquidate his stocks immediately, facing a six-month wait before any potential sale. This delay, however, does little to dampen the enthusiasm surrounding the potential increase in his wealth.
Truth Social was announced in October 2021 as a direct response to bias against conservative voices on mainstream social media platforms like Twitter and Facebook at the time.
Following his suspension from major social media outlets in the wake of the January 6, 2021, breach on the United States Capitol, Trump sought alternative ways to communicate with his base. Truth Social was presented as a “big tent” social media platform that promotes free speech and provides a safe space for conservative discourse without the fear of “cancel culture.”
The platform is often compared to Twitter in terms of its user interface and functionality, allowing users to post messages (“Truths”), re-post others’ messages (“Re-Truths”), and engage with content in a familiar social media environment. It is part of a broader trend of alternative social media platforms gaining popularity among conservative users in the United States.
In February of 2024, Truth Social secured approval from U.S. regulators for a public listing through a merger with the special purpose acquisition company, Digital World Acquisition Corp (DWAC) according to Axios. The approval marked a significant advancement for the deal, which faced setbacks just a day prior.
DWAC announced that the U.S. Securities & Exchange Commission approved its registration statement, setting the stage for a forthcoming shareholder vote. The announcement led to a nearly 15% spike in shares, elevating DWAC’s market valuation to approximately $1.86 billion.
However, there’s a hitch. Earlier in the week, DWAC revealed concerns over former CEO and current director Patrick Orlando’s demand for extra compensation. This poses a potential threat to the timely and successful completion of the merger with Truth Social.
Orlando, who owns 14.8% of DWAC’s shares and has significant control over its founder shares, could derail the merger if he decides to block or demand changes to the agreement.
This comes at a time when Trump’s financial dealings and business empire are under intense examination, with many adversaries hoping to see his influence wane.
On Friday Judge Arthur Engoron ruled that Trump must pay over $350 million and is barred from conducting any business in New York State for three years. In January a Manhattan jury ordered Trump to pay a staggering $83.3 million to E. Jean Carroll in a defamation lawsuit. The decision followed Carroll’s accusation in 2019 that Trump had raped her in a department store dressing room many years prior.
