Staff Reports
It looks like former President Donald Trump is facing another hurdle as he tries to navigate the legal battle in New York. Trump hoped to cash in big with the public trading of his social media company, Truth Social, but it seems he won’t be able to get his hands on that money for quite some time.
Truth Social could save Trump’s assets — but billions might come too late https://t.co/UuQ5F387AE https://t.co/UuQ5F387AE
— Washington Examiner (@dcexaminer) March 22, 2024
The deal allowed Trump’s company to go public, a move that could potentially bring in a whopping $3 billion for the ex-president. However, that money is tied up in a “lock up agreement,” preventing Trump from selling his shares for six months. To make matters worse, Trump’s $464 million bond is due Monday, and he’s struggling to come up with the cash.
Some financial experts are calling foul play, suggesting that investors are only interested in Truth Social because of Trump’s name, not because of the company’s actual potential. It’s like buying a ticket to a magic show just because of the magician’s name, not because you actually believe in magic.
Despite Trump’s attempts to find a way around the trading restrictions or secure a loan, it seems he may be stuck holding onto his stock for the foreseeable future. The merger with Digital World Acquisition Corp has been approved, and Truth Social is expected to hit the NASDAQ under the ticker DJT, making Trump the majority owner with 58% of the company.
But here’s the kicker: Trump has claimed he would divest his interest in the company due to his plans to run for president again, but the company has made it clear that its success relies heavily on Trump’s brand and popularity. It’s like saying you’re not going to eat all the candy, but then hiding it under your bed for a midnight snack.
If there’s one thing we know about the stock market, it’s that there are no guarantees. Some experts predict that Truth Social’s value will plummet once it goes public, leaving Trump with potentially worthless shares for the majority of the year. It’s like investing in a lemonade stand in the middle of winter – not the best idea if you’re hoping for a big return on investment.
In the end, it seems like Trump’s financial strategy may have hit a roadblock. Whether he’ll be able to navigate his way out of this mess remains to be seen, but for now, it looks like Truth Social’s IPO may not be the golden ticket Trump was hoping for.
