Trump's Truth Social clears path to go public with DWAC merger vote

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Digital World Acquisition Corp. (DWAC) shareholders have officially approved the company's merger with Trump Media & Technology Group. Axios Business Editor ...

with Trump Media & Technology Group. Axios Business Editor Dan Primack joins Yahoo Finance Live to discuss the future of Truth Social following the deal's completion.

Primack notes that Trump is set to receive $3.5 billion in stock value. However, he clarifies that this is not actual cash, but paper stock: the former president cannot sell shares for a six-month period. Trump is unlikely to borrow against his shares given the company's status as a meme stock, Primack explains. He adds that post-SPAC companies have done"very poorly" historically, which further dismisses any suspicions that Trump may opt to borrow against his shares.

Regarding Truth Social's business strategy moving forward, Primack notes that it remains unclear, saying that the site is"purely an ad business." However, he acknowledges that the app currently has"a very big fanbase" despite"not much of a business."Trump is about to get $3 billion richer after deal is approved to take his company public.

Investors have approved a deal on Friday to make Truth Social owner Trump Media a publicly traded company. The green light from shareholders clears the final major hurdle for a long-delayed transaction that will generate a multi-billion dollar windfall for former President Donald Trump at a time when he’s facing immense financial and legal pressure.Key Insights Using the 2 Stage Free Cash Flow to Equity, Enbridge fair value estimate is CA$85.32 Current share price...

 

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