Digital World Acquisition Corp. shareholders gave their approval on Friday for the merger with Donald Trump’s social media venture, potentially securing the former president an eventual windfall exceeding $3 billion.
The vote, marking the culmination of efforts initiated about 2½ years ago when the special purpose acquisition company (SPAC) announced its intent to merge with Trump Media & Technology Group, owner of the Truth Social app platform, proceeded amidst looming legal challenges.
Following the shareholder vote, the newly amalgamated entity, Trump Media, is poised to commence public trading, anticipated to occur next week under the stock symbol DJT, mirroring Trump’s initials, reminiscent of his former casino and hotel venture.
Although DWAC’s share price initially experienced a dip of up to 12% post-vote, it managed to recoup much of the losses by noon ET.
Recent lawsuits contesting the merger’s terms, while not impacting the voting schedule, could potentially influence the allocation of shares to key stakeholders instrumental in orchestrating the merger in late 2021.
However, restrictions impede Trump from selling shares for at least six months post-merger, and the longevity of Trump Media’s trading price parity with DWAC remains uncertain.
The board of directors, likely to include individuals with close ties to Trump, such as Donald Trump Jr., Linda McMahon, and Robert Lighthizer, could consider lifting the share lockup period, thereby unlocking a substantial source of liquidity for Trump, who faces significant legal expenses and damages from multiple civil cases.
Trump’s efforts to delay the enforcement of the $454 million fraud judgment are ongoing, with his legal team citing liquidity constraints. However, in a Truth Social post, Trump claims to possess nearly $500 million in cash.
