Trump’s Social Media Company to Begin Trading on Nasdaq Tuesday

Trump’s Social Media Company to Begin Trading on Nasdaq Tuesday

(Bloomberg) — Shares of the blank-check company merging with former President Donald Trump’s social media startup jumped 35% Monday, after the combined company announced it was preparing to begin its negotiations on Tuesday, which could bring it a financial windfall.

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Trump Media & Technology Group is expected to list on Nasdaq under the symbol DJT after reaching a deal with Digital World Acquisition Corp., according to a statement, after more than two years of difficulties.

DWAC shares rose to $49.95 each, marking the biggest one-day gain since January, according to data compiled by Bloomberg. The stock more than recovered from Friday’s 14% drop when the shareholder vote on the deal passed as expected. SPAC-linked warrants rose 26% to $23.15, the highest in two years.

The merger could potentially give Trump more than $5 billion worth of shares, although they would be subject to lock-up agreements and performance requirements that could temporarily hamper his ability to monetize the shares and ease his cash crunch current.

Read more: Trump’s wealth hits record $6.4 billion thanks to SPAC deal, bond reduction

Digital World CEO Eric Swider will become a director of the combined company, which will be led by Devin Nunes, a former California representative who left Congress to become CEO of Trump Media, according to the release.

The windfall could come at a critical time for Trump, who earlier this month became the presumptive Republican presidential nominee. He pays millions of dollars a month to fund his ongoing legal troubles. The first of his criminal trial is scheduled for April 15, a judge ruled. Separately, a New York appeals court agreed Monday to reduce the former president’s bail in his fraud case by more than two-thirds, bringing it to $175 million, while he appeals the verdict. .

The special purpose acquisition vehicle has more than doubled this year as investors use it as a way to bet on Trump’s re-election. The stock has been a favorite among retail traders since the deal was announced in 2021, with posts on Stocktwits and Reddit Inc.’s WallStreetBets forum encouraging people to buy shares.

(Updates with shares in first and third paragraphs.)

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