Don’t Worry, Trump’s Truth Social Payday Won’t Really Save Him

Donald Trump may finally get the money to start paying down his legal bills, after his social media company completed a merger Friday with a wealthy shell company.

Shareholders of Digital World Acquisition Corporation approved the merger with Trump Media & Technology Group, which has nearly run out of cash. The deal will inject more than $300 million into Trump Media and keep Truth Social, the former president’s personal social media platform, up and running.

Trump Media will now debut on the stock market with a value of more than $5 billion. Trump will own a dominant stake in the company worth more than $3 billion.

The merger comes just days before Trump must post the $464 million bond in his New York civil fraud trial. If he fails to secure the massive amount, the state attorney general can begin seizing his assets as repayment. Although the merger will provide Trump with an unexpected windfall, he may not be able to cash in just yet.

Under the merger deal, Trump is prohibited from selling any of his shares or using them as collateral for a loan for six months. He can ask the board of Digital World Acquisition Corporation to waive that rule for him, but it is unclear if they will agree.

Trump could attempt to stack the board with his allies in an effort to swing a vote in his favor, but even then, the merger is unlikely to turn out to be a golden goose. The terms of the deal prevent him from selling more than one percent of outstanding shares per quarter. And current investors won’t want him to sell off a large swath of stocks at once because it could signal he’s losing interest in the business, which in turn could turn off potential investors.

“It’s simply trading on Trump’s name,” Kristi Marvin, founder of the research firm SPACInsider, told Politico. “People aren’t buying this because they like the fundamentals—they’re buying this because they like Trump.”

And even when Trump manages to offload a large amount of stock, there’s no guarantee how much it will be worth. The stock value will depend on the whims of what Boston College law professor Brian Quinn described to Politico as “MAGA meme stock investors.”

“By the time Trump is able to start selling his shares, I doubt they will be worth much,” Quinn said. “Certainly less than his present requirements.”

And Trump has a lot of requirements. As his campaign trail fundraising lags, he struck a new joint fundraising agreement with the Republican National Committee (which is co-chaired by his daughter-in-law). Donations will now go first to his campaign and a PAC that pays his legal bills first, before the RNC can get a share, the Associated Press reported Thursday night.

Trump reportedly only has about $413 million in cash assets, not nearly enough to pay off his various legal fines. In addition to the $464 million he owes New York state, Trump owes nearly $400,000 to The New York Times and thousands of dollars for gag order violations.

He also owes $382,000 to Orbis Business Intelligence, the consulting firm owned by former British intelligence officer Christopher Steele. Trump had sued Orbis over a dossier Steele compiled in 2016 that alleged Trump and members of his inner circle had been “compromised” by Russia’s security service.

This story has been updated.