Trump Plans Return to Wall Street Through Media Company Merger

Months after exiting the political limelight of the White House, Donald Trump has set his sights back on the financial sphere, specifically Wall Street, with a venture that is stirring both anticipation and skepticism. T

by Faruk Imamovic
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Trump Plans Return to Wall Street Through Media Company Merger
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Months after exiting the political limelight of the White House, Donald Trump has set his sights back on the financial sphere, specifically Wall Street, with a venture that is stirring both anticipation and skepticism. The former President's journey back into the bustling world of finance has been anything but straightforward, marked by regulatory and legal challenges that have now, finally, begun to clear.

The focal point of this resurgence is a merger involving Trump Media & Technology Group, the parent company of Truth Social, and a blank-check company, a move that could significantly amplify Trump's financial clout.

SEC Greenlights Trump's Financial Venture

The Securities and Exchange Commission (SEC) has recently approved a merger between Trump Media & Technology Group and Digital World Acquisition Corp., a special purpose acquisition company (SPAC).

This approval eradicates the final major barrier to the deal, setting the stage for Trump Media to transition into a publicly traded entity. It's a strategic pivot that places Trump in a potentially lucrative position, owning a substantial stake in a company poised for public investment.

Digital World Acquisition Corp. announced that the merger's proxy had received SEC endorsement, with plans to set a shareholder vote imminently. Finance experts and market analysts are closely watching this development, noting the significant implications it has for both Trump's financial portfolio and the broader market.

Jay Ritter, a finance professor at the University of Florida, remarked on the deal's progression, highlighting the years of anticipation leading up to this moment.

Financial Prospects and Challenges Ahead

The merger's approval has catalyzed a notable increase in Digital World's stock value, reflecting investor enthusiasm bolstered by Trump's ongoing political endeavors and the merger's advancement.

With an ownership of approximately 79 million shares, Trump's stake in the combined company could ascend to a valuation of around $4 billion, based on current trading prices. However, transitioning this paper wealth into tangible assets presents its own set of challenges, including a mandatory lock-up period and the intrinsic volatility associated with the company's close ties to Trump's fluctuating political fortunes.

The valuation of this merger, and by extension the company, has sparked debate among analysts. The term "meme stock" has been used to describe the situation, with some experts arguing that the company's market valuation vastly exceeds its fundamental value, given its minimal revenue streams and significant cash burn.

Despite these financial headwinds, Trump Media's leadership is optimistic, viewing the SEC's approval as a pivotal milestone in their mission to create a "free speech highway" outside the constraints of mainstream Big Tech.

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