With former US President Donald Trump facing huge legal expenses in his ongoing trials, including $454 million civil fraud judgment in New York, a piece of good news has trickled down for the Truth Social owner as investors have approved a merger valued at nearly $6 billion.
This is also a bit of a relief for Trump as he gears up for campaigning and seeks to manage the cost of it ahead of the upcoming presidential elections. Shareholders of Digital World Acquisition Corp approved the merger with Trump Media & Technology Group.
The deal valued Trump’s majority stake in Truth Social at around $3.6 billion. Now, the deal is expected to be completed next week, reports said. However, the merger faces challenges. Former Digital World CEO Patrick Orlando, along with Trump’s associates Andy Litinsky and Wes Moss, have filed lawsuits seeking additional shares. This has complicated the deal’s future.
Trump’s ability to capitalise on the windfall is restricted, with a six-month lockup period preventing him from selling shares or leveraging them for loans.
Trump’s return to social media through Truth Social follows his ban from mainstream platforms, including X, which later reinstated the former US president. The ban was in connection to Trump’s comments after the January 6, 2021 Capitol attack.
(With inputs from agencies)
