Former President Donald Trump’s social media fortune is set to increase significantly due to the conditions of the Truth Social merger, granting him millions of additional shares in the public company. Trump is expected to receive an additional 36 million shares as part of an earnout bonus, increasing his holdings from 78.8 million shares to 114.8 million shares. This would boost his social media stake from $2.5 billion to $3.7 billion, adding $1.2 billion to his net worth. Despite a drop in Trump Media stock on Tuesday, the company still has a market capitalization of $4.5 billion.
Trump’s net worth was estimated at $4.4 billion at the end of Tuesday’s trading, taking into account his existing Truth Social shares and other assets. If the additional shares are granted, his fortune could climb to around $5.5 billion. However, questions remain about the true value of Trump’s earnout award, as it relies on the assumption that the company’s valuation can support such a significant increase in shares without negatively impacting existing shareholders. The stock’s recent decline raises concerns about its true worth, as it may be overvalued by the market.
Despite the potential increase in Trump’s net worth, it is unclear when or how he would be able to sell or dispose of his shares in Trump Media due to his status as the company’s majority shareholder. This presents regulatory challenges and uncertainties regarding any potential stock sales by Trump. The company’s stock dropped by 18% after announcing a possible offering, indicating that the market may have concerns about the firm’s valuation and future prospects. The current valuation of the company may not accurately reflect its fundamentals and could be significantly inflated.
Overall, Trump’s social media fortune is set to grow significantly with the additional shares he is expected to receive as part of the Truth Social merger. However, there are lingering questions about the true value of the company and the feasibility of Trump cashing in on his stake. The recent drop in Trump Media’s stock price raises concerns about the company’s true worth and its ability to maintain its current valuation. It remains to be seen how Trump’s net worth will ultimately be impacted by the conditions of the merger and the future performance of the company.
