Trump in Line for Extra SPAC Payday Despite $4.5 Billion Selloff

-- A rocky start for Trump Media & Technology Group Corp. shares has wiped out $4.5 billion in market value in just a couple of weeks. But it will have to lose a lot more than that to put at risk the massive special bonus due to the former president and his corporate insiders.Risk-Addicted Wall Street Funds Are Shaken as Bad News Piles Up

The insiders are somewhat protected even if the shares keep falling and drop below $17.50, because the payout slides, but doesn’t disappear, as the stock hits certain levels. So, as long as Trump Media trades above $15, the group will get 30 million shares to split. And if the shares fall toward $12.50 the payout drops to 15 million shares.

The actual value of Trump Media has been hotly debated given it lost more than $55 million last year while bringing just $4.1 million in revenue. As of Friday’s close, it was worth roughly $4.5 billion after shedding nearly half its value in less than a month. Trump is embroiled in a lawsuit with two Trump Media co-founders who claim he tried to dilute their stakes. A Delaware judge granted their request to amend the suit to include allegations that Trump retaliated against them by locking up their shares for six months, which they claim will cause “irreparable harm” to their finances. Trump himself is subject to the same restrictions.

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