DON'T WAIT.

We publish the objective news, period. If you want the facts, then sign up below and join our movement for objective news:

TOP STORIES

Latest News

Trump To Receive 36M Shares in Media Group, Valued at $1.25 Billion

 April 24, 2024

Donald Trump is on the verge of significantly boosting his portfolio with a substantial share acquisition from Trump Media & Technology Group. Trump's impending 36 million share bonus from Trump Media could elevate his holdings to $1.25 billion, contingent on stock performance criteria.

In March, as Trump Media & Technology Group went public, a special provision was structured into the deal that was set to award Trump with millions of shares if certain stock performance thresholds were met, as the Post Millennial reports.

Stock Performance Key to Trump's Bonus

The condition tied to these shares required that the company's stock, trading under the symbol $DJT, maintain a minimum price of $17.50 over a period of 20 days within a 30-day span.

This threshold was critical for Trump to receive the bonus shares.

By Tuesday, this condition had been fulfilled, paving the way for Trump to claim the earnout shares. The shares, valued at nearly $1.3 billion based on current prices, represent a significant boost to Trump’s existing assets in the company.

However, even with the condition met, Trump along with other executives must wait approximately five more months before they can sell any of their newly acquired shares. This restriction is part of a six-month lockout period imposed on their trading to potentially stabilize the market post-distribution.

Trump's Growing Influence in Media

Prior to this bonus, Trump already owned a substantial portion of TMTG. His holdings included 78 million shares, which amounted to about 57% of the company. With the addition of the 36 million bonus shares, his total would surge to 115 million shares.

At current valuations, this would place Trump’s stake in the company at an estimated $4.1 billion. This calculation underscores the significant financial impact of the additional shares on Trump's net worth.

Moreover, the TMTG board retains the option to shorten the six-month trading lockout. This could be utilized to provide liquidity for executives like Trump, potentially to cover legal expenses or other financial needs.

Controversies Surrounding Stock Performance

Amidst this financial windfall, TMTG has not been without its controversies. CEO Devin Nunes has publicly criticized certain market behaviors which he attributes to undermining the stock’s value.

Nunes accused a group of investors of illegal short selling, a tactic where stocks are borrowed and sold with the hope of buying them back cheaper, thereby profiting from the decline in stock prices. He has actively advised shareholders on strategies to counteract these actions.

His remarks highlight the ongoing struggles within the stock market that affect investor confidence and could potentially impact the stock’s stability and future value.

Broad Investor Base Supports Trump Media

Despite the challenges, TMTG benefits from a broad base of investors, many of whom are regular Americans supportive of Trump and the platform's objectives, such as the social media outlet Truth Social.

Initially, shares of $DJT soared to nearly $80 but have since experienced a decline. This volatility is typical in newly traded stocks, especially those surrounded by high-profile developments and media scrutiny.

Nevertheless, the firm foundation of support from a diverse investor group helps to cushion the stock against more significant downturns and sustains its overall market presence.

Conclusion

To summarize, Donald Trump is set to enhance his investment portfolio with an additional 36 million shares of Trump Media & Technology Group, following the stock meeting specific trading conditions.

These shares, amounting to nearly $1.3 billion, add substantially to his already significant stake, now valued at approximately $4.1 billion.

Despite facing allegations of stock manipulation and market challenges, TMTG continues to draw support from a broad base of investors, securing its place in the competitive media landscape.