Former US President Donald Trump is poised to secure a staggering £1.5bn windfall after shares in his Truth Social platform skyrocketed following the approval of a merger deal. The social media company, Trump Media & Technology Group (TMTG), saw its value soar after shareholders greenlit a merger with Digital World Acquisition Corp (DWAC), a special purpose acquisition company (SPAC).
A Controversial Windfall
The deal, which values Truth Social at approximately £3.8bn, has raised eyebrows among financial analysts and political commentators. Trump, who owns a majority stake in TMTG, could see his net worth surge by nearly £1.5bn if the merger proceeds as planned. However, sceptics argue the valuation is inflated, given Truth Social's relatively small user base compared to rivals like Twitter (now X) and Facebook.
Market Reactions and Legal Hurdles
Howard Lutnick, CEO of Cantor Fitzgerald, which backs DWAC, defended the merger, stating it reflects "market confidence" in Trump's brand. Yet, the timing has drawn scrutiny, as Trump faces multiple legal challenges, including a £355m fraud penalty in New York. Critics suggest the deal may be an attempt to bolster his finances ahead of potential liabilities.
What’s Next for Truth Social?
The merger is expected to finalise in the coming weeks, with Truth Social shares set to trade under the ticker "DJT"—Trump’s initials. While supporters hail the platform as a free-speech alternative, analysts warn of volatility, citing DWAC's history of regulatory delays and lawsuits.
As the 2024 US election looms, Trump’s financial manoeuvres are under intense scrutiny. Whether Truth Social can sustain its valuation—or become another chapter in Trump’s contentious business legacy—remains to be seen.
