Former President Donald Trump has increased his ownership in Trump Media, the company behind his social media platform Truth Social, by securing an additional $1.6 billion worth of shares. Based on hitting certain price benchmarks, Trump was awarded an extra 36 million shares, bringing his total ownership to over 114 million shares, valued at approximately $5.2 billion as of Wednesday’s closing stock price. Despite this, Trump is currently unable to sell any shares for six months after the company went public, unless granted a waiver from the board. Trump now owns nearly two-thirds of the company’s outstanding shares, with Trump Media & Technology Group shares experiencing a surge and reaching $49.93 before dropping by 9.6% to $45.13.
Trump Media gained a spot on the Nasdaq through a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC) that provides young companies a quicker path to public trading. Following the merger on March 26, shares in the newly combined entity peaked at almost $80 before closing at $57.99. However, less than a week after this successful stock market debut, Trump Media disclosed a loss of $58.2 million in the previous year, leading to a 21% decrease in its stock value. This loss contrasts sharply with the $50.5 million profit reported in 2022.
In the subsequent weeks, the company’s stock experienced fluctuations, dropping to around $22 before recovering in mid-April. Truth Social was launched in February 2022, a year after Trump’s ban from major social platforms like Facebook and Twitter following the January 6 insurrection at the Capitol. Although he has been reinstated on these platforms, Trump has continued to use Truth Social. The company’s performance in the stock market has been closely watched, especially as it navigates challenges and opportunities in the world of social media.
The success and setbacks of Trump Media’s stock value reflect the dynamic nature of the market and the company’s position within it. Trump’s significant ownership and the company’s connections to his personal brand add an extra layer of interest and scrutiny to its performance. As the company continues to evolve and adapt to changing conditions, investors and analysts will be closely monitoring its progress and assessing its potential for growth. The competitive landscape of social media platforms, combined with the unique circumstances surrounding Trump’s involvement, make Trump Media a key player in the broader discussion of social media and technology.
The impact of Trump’s increased ownership in Trump Media extends beyond just financial implications, as it also raises questions about the future direction of the company and its role in the social media industry. With Trump’s presence and influence, the company has the potential to carve out a distinct niche in the market and attract a specific audience. However, it will also face challenges and scrutiny, given the controversial nature of Trump’s tenure as President and his history with social media platforms. The coming months will be crucial in determining the trajectory of Trump Media and its significance in the broader landscape of social media and technology.
