This photo illustration shows an image of former President Donald Trump next to a phone screen displaying the Truth Social app, in Washington, DC, on February 21, 2022.
Stefani Reynolds | Afp | Getty Images
Donald Trump could stand to gain a windfall of $3 billion or more – at least eventually – if shareholders participate Digital World Acquisition Corp. will vote on Friday to approve a merger with the former president’s social media company.
The DWAC shareholder vote comes about two and a half years after the so-called special purpose acquisition company announced plans to merge with Trump Media & Technology Group, the private company that owns the Truth Social app platform.
This comes even as Trump faces the possibility that New York Attorney General Letitia James will begin trying to collect on a massive $454 million civil fraud judgment against him on Monday.
If approved as expected, the new company’s shares could begin trading next week under the stock symbol DJT, Trump’s initials.
Trump’s long-defunct hotel and casino company also operated under that symbol.
Several lawsuits recently filed over the terms of the merger have not affected the voting schedule.
Trump would have nearly 80 million shares of the merged company.
At DWAC’s current trading prices, that would be worth about $3 billion or more, although it’s unclear what the combined company’s opening share price will be.
This potential windfall for Trump, while huge, could not be realized immediately, at least not under the current terms of the deal. Trump will be barred from selling shares of the merged company for at least six months.
It is possible that the board of directors will vote to allow Trump to sell shares before that date.
That, in turn, could quickly free up a large source of cash for Trump, who is the presumptive Republican presidential nominee this year.
Trump currently faces large legal fees from his lawyers in criminal and civil cases, as well as judgments exceeding half a billion dollars in three separate civil cases.
Trump earlier this week asked the New York appeals court to stay his $454 million fraud sentence in an attempt to overturn the verdict in the case. That court has yet to rule on his request.
Trump’s lawyers in a court filing said he didn’t have enough cash to offer as collateral to bond companies for a bond that would secure the judgment and prevent James from collecting.
But in a Truth Social post on Friday, Trump says that “I currently have almost five hundred million in cash.”
This is developing news. Check back for updates.