Shareholders have overwhelmingly voted in favor of making Trump Media & Technology Group (TMTG), the parent company of Truth Social, a publicly traded entity. This decision comes as a significant development in the journey of TMTG, signaling its transition to the public market through a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC) already trading on the stock exchange. As a result of this merger approval, TMTG stock is set to be listed on Nasdaq under the ticker symbol “DJT” as early as next week.
Former President Trump, whose leadership has ignited a transformative movement within the conservative sphere, holds a substantial stake in TMTG, amounting to 78.7 million shares. At the current stock price of approximately $44.17, Trump’s personal investment in the company stands to be valued between $3 billion and $4 billion. However, it’s worth noting that there is a six-month lock-up period on Trump’s shares, although the board retains the authority to waive this restriction if deemed appropriate.
The merger not only solidifies TMTG’s position as a publicly traded entity but also injects approximately $300 million into Truth Social, the platform envisioned as a haven for free speech amidst concerns about censorship on mainstream social media platforms. With former Congressman Devin Nunes at the helm as CEO, TMTG aims to further expand its reach and influence in championing unrestricted expression online. Nunes emphasized the critical need for platforms like Truth Social in today’s landscape, where dissenting voices often face suppression and censorship by Big Tech conglomerates.
The path to this merger has been marked by hurdles, including investigations by the U.S. Securities and Exchange Commission (SEC) into alleged pre-targeting by Digital World Acquisition Corp. However, last month, the SEC greenlit the merger, clearing the way for TMTG’s entry into the public market. Since its inception in October 2021, TMTG has navigated challenges and controversies, culminating in the launch of Truth Social in February 2022, following Trump’s bans from major social media platforms in the aftermath of the Jan. 6, 2021 events.
Truth Social has quickly garnered a substantial user base, attracting millions of individuals seeking an alternative to mainstream platforms. Notably, even President Biden’s re-election campaign has found a presence on the platform, underscoring its growing influence in the political and social landscape. As Truth Social continues to expand its reach and promote free expression, its emergence as a publicly traded entity signifies a significant milestone not only for TMTG but also for the broader conservative movement seeking to reclaim digital spaces for open dialogue and discourse.
