Donald Trump's Net Worth Soars with Truth Social Going Public
Former President Donald Trump sees a significant increase in his net worth as his company, Trump Media & Technology Group, finalizes a deal to go public with Truth Social. This move results in a substantial windfall for Trump, doubling his estimated net worth.
Truth Social owner Trump Media & Technology Group has completed its process of going public, bringing a significant increase in former President Donald Trump's net worth. After announcing its stock market debut on Tuesday, Trump Media enabled Trump to be listed among the world's 500 richest individuals on the Bloomberg Billionaires Index for the first time.
Bloomberg reported that Trump's net worth increased by $4 billion in just one day, bringing his total fortune to $6.5 billion. This surge in wealth is attributed to the merger between Trump Media and Digital World Acquisition Corp., which has resulted in a multi-billion dollar windfall for Trump as the chairman and majority shareholder of the newly formed company.
Shares of Digital World surged 21% following the completion of the merger. The buying trend continued on Monday afternoon, driving Digital World's stock up by 39% to approximately $51. This increase in value means that Trump's stake is now worth around $4 billion. However, there are lock-up restrictions in place that would likely prevent Trump from selling or using the stock as collateral for several months.
The new company will be trading under the ticker symbol "DJT" on the Nasdaq Stock Market starting on Tuesday, as announced by the companies.
Devin Nunes, who is the CEO of the merged company, mentioned that their goal is to "reclaim the Internet from Big Tech censors."
He also stated, "We remain dedicated to being a safe space for free speech and resisting the increasing number of individuals trying to limit freedom of expression."
Shares of Digital World Acquisition Corp (DWAC), the parent company of Truth Social, saw a significant increase of more than 20% on Monday. In the last six months, the stock has risen by over 170%.
However, experts caution that the current market valuation of Trump Media, the parent company of Truth Social, may be too high considering the company's underlying financial performance.
Trump Media only made $3.4 million in revenue in the first nine months of last year, as reported by SEC filings. During this time, the company also suffered a net loss of $49 million.
On the other hand, Truth Social is experiencing a decrease in its user base, even more than X, the company previously known as Twitter.
Truth Social's US monthly active users on iOS and Android have decreased by 39% compared to last year, as reported by Similarweb data shared with CNN recently.
The trading of DWAC shares, in anticipation of its merger with Trump Media, has sparked a frenzy similar to the surge seen in Tupperware's stock last July, as well as meme stocks like AMC Entertainment and GameStop during the pandemic peak. On Truth Social, there is a chat group called "The DWAC Shareholder Group" with over 8,000 members discussing the shareholder vote for the merger and sharing memes and messages of support.
Contributing: CNN’s Elisabeth Buchwald and Krystal Hur.
This story has been updated with additional context.
Editor's P/S:
The merger of Trump Media and Digital World Acquisition Corp. has propelled former President Donald Trump into the ranks of the world's 500 richest individuals, with his net worth soaring by $4 billion. However, experts caution that the market valuation of Trump Media may be inflated, given its modest revenue and declining user base. The company's future success hinges on its ability to attract and retain users in an increasingly competitive social media landscape.
Despite the financial uncertainty, Trump Media's debut on the Nasdaq Stock Market has sparked a frenzy among investors and supporters. The "DWAC Shareholder Group" on Truth Social is a testament to the enthusiasm surrounding the company's merger. However, it remains to be seen whether this enthusiasm can translate into long-term growth and profitability for Trump Media. While the merger has brought a windfall for Trump, it remains to be seen whether Truth Social can sustain its growth and become a viable competitor in the social media landscape.
