Editor’s Note: The article has been updated with details of the acquisition and reworded for clarity.
Trump Media & Technology Corp. Group (NASDAQ:DJT) The stock was volatile during Friday’s trading session.
On Thursday, the company signed an agreement to acquire key assets for its project content delivery network (CDN).
TMTG has acquired the non-exclusive perpetual licensing rights to the new CDN technology from Perception Group, Inc..
The technology will initially enable linear TV delivery through TMTG’s social media platform, Truth Social, and will eventually expand to standalone apps.
The agreement also includes a possible future acquisition of Perception Group, but with immediate restrictions on Perception’s operations in competitive markets in the United States for the next five years.
Trump Media is proposing to finance the deal by issuing 5.1 million shares of common stock and paying $17.5 million over three years.
In addition, TMTG has entered into a reserve share purchase agreement with Yorkville Councillorsallowing it to issue shares of up to $2.5 billion at a discount.
The deal gives TMTG flexible access to capital, which it plans to use to acquire more assets and technologies aimed at supporting free expression and reducing the influence of Big Tech on digital communication.
Read also : Trump Media faces stock dilution concerns after raising $105 million in warrants
The company says the move is part of its broader strategy to improve its offering and expand its user base. It aims to provide a trusted platform for content at risk of cancellation by big tech companies, such as news shows, religious channels and family-friendly content that has been or is at risk of being canceled.
Meanwhile, Trump Media’s majority shareholder, former President Donald Trump, challenged President Joe Biden to a debate without moderators and with fewer rules to prove Biden’s “competence or lack thereof.”
He criticized the structured format of their previous debate hosted by CNN, which drew 47.9 million viewers.
According to the New York Times, Trump said the format would give Biden a platform to explain his policies. report.
He added that this debate would test Biden’s competence under pressure.
Following the first debate on June 27, several key Democratic figures and editorial boards called on Biden to withdraw from the reelection race.
Price action: DJT shares were trading down 5.27% at $29.46 at last check Friday.
Disclaimer: This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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